How to participate: The Town of Los Gatos strongly encourages your active participation in the public process, which is the cornerstone of democracy. If you wish to speak to an item on the agenda, please follow the participation instructions on page 2 of this agenda. If you wish to speak to an item NOT on the agenda, you may do so during the “Verbal Communications” period, by following the participation instructions on page 2 of this agenda. The time allocated to speakers may change to better facilitate the Town Council meeting.
Effective Proceedings: The purpose of the Town Council meeting is to conduct the business of the community in an effective and efficient manner. For the benefit of the community, the Town of Los Gatos asks that you follow the Town’s meeting guidelines while attending Town Council meetings and treat everyone with respect and dignity. This is done by following meeting guidelines set forth in State law and in the Town Code. Disruptive conduct is not tolerated, including but not limited to: addressing the Town Council without first being recognized; interrupting speakers, Town Council or Town staff; continuing to speak after the allotted time has expired; failing to relinquish the podium when directed to do so; and repetitiously addressing the same subject.
Deadlines for Public Comment and Presentations are as follows:
Persons wishing to make an audio/visual presentation on any agenda item must submit the presentation electronically, either in person or via email, to the Clerk’s Office no later than 3:00 p.m. on the day of the Council meeting.
Persons wishing to submit written comments to be included in the materials provided to Town Council must provide the comments as follows:
o For inclusion in the regular packet: by 11:00 a.m. the Thursday before the Council meeting
o For inclusion in any Addendum: by 11:00 a.m. the Monday before the Council meeting o For inclusion in any Desk Item: by 11:00 a.m. on the day of the Council Meeting
TOWN OF LOS GATOS
COUNCIL MEETING AGENDA
JANUARY 17, 2023
110 EAST MAIN STREET AND TELECONFERENCE
TOWN COUNCIL CHAMBERS
LOS GATOS, CA
7:00 PM
Maria Ristow, Mayor
Mary Badame Vice Mayor
Matthew Hudes, Council Member
Rob Moore, Council Member
Rob Rennie, Council Member
PARTICIPATION IN THE PUBLIC PROCESS
Town Council Meetings Broadcast Live on KCAT, Channel 15 (on Comcast) on the 1st and 3rd Tuesdays at 7:00 p.m.
Rebroadcast of Town Council Meetings on the 2nd and 4th Tuesdays at 7:00 p.m.
Live & Archived Council Meetings can be viewed by going to:
www.LosGatosCA.gov/TownYouTube
IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE CLERK DEPARTMENT AT (408) 354-6834. NOTIFICATION 48 HOURS BEFORE THE MEETING WILL ENABLE THE TOWN TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28 CFR §35.102-35.104]
TOWN OF LOS GATOS
COUNCIL MEETING AGENDA
JANUARY 17, 2023
110 EAST MAIN STREET AND TELECONFERENCE
TOWN COUNCIL CHAMBERS
7:00 PM
IMPORTANT NOTICE
This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E.
Main Street and virtually through the Zoom webinar application (log-in information provided below). Members of the public may provide public comments for agenda items in-person or virtually through the Zoom webinar by following the instructions listed below. The live stream of the meeting may be viewed on television and/or online at www.LosGatosCA.gov/TownYouTube.
PARTICIPATION
To provide oral comments in real-time during the meeting:
Zoom webinar: Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://losgatoscagov.zoom.us/j/89706482434?pwd=VmRFOU5jdVUzUFRTL042bm9WN2cvZz09 Passcode: 878334 You can also type in 89706482434 in the “Join a Meeting” page on the Zoom website at https://zoom.us/join.
o When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom. If you are participating by phone on the Zoom app, press *9 on your telephone keypad to raise your hand. Join by telephone: Join by Telephone: Dial: USA 877 336 1839 US Toll-free or 636 651 0008 US Toll. Conference code: 686100
o If you are participating by calling in, press #2 on your telephone keypad to raise your hand.
In-Person: If you wish to speak during the meeting, please complete a “speaker’s card” located on the back of the chamber benches and return it to the Town Clerk. If you wish to speak to an item on the agenda, please list the item number. If you wish to speak on an item NOT on the agenda, please list the subject and you may speak during the “Verbal Communications” period. The time allocated to speakers may change to better facilitate the Town Council meeting.
When called to speak, you may be asked to provide your full name and your town/city of residence. This identifying information is optional and not a requirement for participation. Please limit your comments to three (3) minutes, or such other time as the Mayor may decide, consistent with the time limit for speakers at a Council meeting. If you wish to speak to an item or items on the Consent Calendar, please state which item number(s) you are commenting on at the beginning of your time.
If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment) or “Verbal Communications – Non-Agenda Item.” Comments received by 11:00 a.m. the day of the meeting
will be reviewed and distributed before the meeting. All comments received will become part of the record.
RULES OF DECORUM AND CIVILITY
To conduct the business of the community in an effective and efficient manner, please follow the meeting guidelines set forth in the Town Code and State law.
The Town does not tolerate disruptive conduct, which includes but is not limited to:
· Addressing the Town Council without first being recognized; · Interrupting speakers, Town Council, or Town staff;
· Continuing to speak after the allotted time has expired; · Failing to relinquish the microphone when directed to do so; · Repetitiously addressing the same subject.
Town Policy does not allow speakers to cede their commenting time to another speaker. Disruption of the meeting may result in a violation of Penal Code Section 403.
MEETING CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
PRESENTATIONS
i. Recognize Outgoing Board, Commission, Committee Members.
CLOSED SESSION REPORT
COUNCIL / MANAGER MATTERS
CONSENT ITEMS (Items appearing on the Consent Items are considered routine Town business and may be approved by one motion. Any member of the Council may request to have an item removed from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the Mayor asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions contained on
the item will be heard.)
1. Approve Draft Minutes of the December 20, 2022 Town Council Meeting.
2. Approve Draft Minutes of the January 10, 2023 Special Town Council Meeting.
3. Adopt a Resolution Reaffirming Resolution 2021-044 and Making Findings Pursuant to Government Code Section 54953, as Amended by Assembly Bill 361, and, Due to Health and Safety Concerns for the Public, Authorizing the Use of Hybrid Meetings for the Town Council and the Continued Use of Virtual Meetings for Boards and Commissions While Town Staff Makes the Necessary Arrangements to Transition to Hybrid Meetings for All Town Boards, Commissions, and Committees.
4. Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832-4505):
a. Approve the Plans and Specifications;
b. Authorize Advertising the Project for Bid Upon Receipt of Formal Funding Approval (E-76) from Caltrans; and
c. Authorize the Release of a Request for Proposals for Construction Management, Inspection, and Materials Testing Services.
5. Legal Costs for Colantuono, Highsmith & Whatley, PC
a. Authorize Payment of Up to An Additional $50,000 for a Total Payment Not to Exceed $150,000 for Fiscal Year 2022/23; and
b. Authorize Expenditure Budget Adjustment in an Amount of $100,000 From Available General Fund Capital/Special Projects Reserve.
6. Adopt a Resolution to Extend the Term of the Housing Element Advisory Board.
7. Authorize Budget Adjustments in the Total Amount of $57,046 to Recognize Receipt and Expenditure of Pacific Library Partnership, California State Library, and Library Services & Technology Act Grant Funds.
8. Authorize the Town Manager to Execute a Fifth Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to Increase Compensation for Fiscal Year 2022/23 in an Amount of $100,000 for a Total Annual Amount Not to Exceed $200,000 with the Total Agreement Amount Not to Exceed $1,096,000.
9. Authorize the Town Manager to Execute a Third Amendment to a Consultant Agreement for Executive Recruitment Services with Teri Black & Company, LLC for an Additional Amount of $31,000 with a Total Amount Not to Exceed $170,500 and Authorize an Expenditure Budget Adjustment from Available General Fund Capital/Special Projects Reserve.
10. Receive Monthly Investment Reports for October and November 2022.
VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council on any matter that is not listed on the agenda. To ensure all agenda items are heard and unless additional time is authorized by the Mayor, this portion of the agenda is limited to 30 minutes and no more than three (3) minutes per speaker. In the event additional speakers were not able to be heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment.)
PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a total of five minutes maximum for opening statements. Members of the public may be allotted up to three minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of three minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.)
11. Consider Objections to the Proposed Abatement of Hazardous Vegetation (Weeds) for Properties Listed on the 2023 Weed Abatement Program Commencement Report and Order the Abatement.
12. Consider a General Plan Amendment by Resolution to Add Policies to the Hazards and Safety Element. Location: Town-Wide. General Plan Amendment Application GP-22- 002.
OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)
13. Receive the Police Services Report: July – December 2022.
14. Review and Approve the Town’s Response to the 2022 Civil Grand Jury of Santa Clara County Report Entitled, “Show Me the Money: Financial Transparency Needed” and the Changes to the Town’s Operating Portfolio Investment Policy as Reviewed by the Finance Commission.
PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a total of five minutes maximum for opening statements. Members of the public may be allotted up to three minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of three minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.)
15. Consider an Appeal of a Planning Commission Decision to Deny a Fence Height Exception Request for Construction of a Six-Foot Fence Located Within the Required Front Yard Setback and a Vehicular Gate Set Back Less than 18 Feet from the Edge of the Adjacent Street on Property Zoned R-1:10. Located at 755 Blossom Hill Road. APN 523- 04-043. PROPERTY OWNER/APPELLANT: David and Ilana Kohanchi. APPLICANT: Nina Guralnic.
ADJOURNMENT (Council policy is to adjourn no later than midnight unless a majority of Council votes for an extension of time)
Writings related to an item on the Town Council meeting agenda distributed to members of the Council within 72 hours of the meeting are available for public inspection at the front desk of the Los Gatos Town Library, located at 100 Villa Avenue, and are also available for review on the official Town of Los Gatos website. Copies of desk items distributed to members of the Council at the meeting are available for review in the Town Council Chambers.
Note: In accordance with Code of Civil Procedure §1094.6; litigation challenging a quasi-adjudicatory decision of the Town Council must be brought within 90 days after the decision is final unless a shorter time is required by State or Federal law.
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 1/17/2023
ITEM NO: 1
DRAFT
Minutes of the Town Council
December 20, 2022
The Town Council of the Town of Los Gatos conducted a regular meeting in-person and utilizing teleconferencing means on Tuesday, December 20, 2022 at 7:00 p.m.
MEETING CALLED TO ORDER AT 7:00 P.M.
ROLL CALL
Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie.
Absent: None
PLEDGE OF ALLEGIANCE
Dominic Farwell led the Pledge of Allegiance. The audience was invited to participate.
COUNCIL / MANAGER MATTERS
Council Matters
- Council Member Hudes stated he attended the Senior Service Committee Roadmap subcommittee meetings, the Finance Commission meeting, and Senior Service Committee meetings.
- Council Member Rennie stated he attended the Bay Area Air Quality Management District (BAAQMD) Board meeting, the Valley Transportation Authority (VTA) Policy Advisory Committee meeting, Cities Association Holiday Party, the Swearing-In of Assembly Member Pellerin, the Silicon Valley Clean Energy Risk Oversight Committee meeting, the BAAQMD Legislative Committee meeting, the Finance Commission meeting, and the Silicon Valley Clean Energy Board meeting.
- Council Member Moore stated he attended the retirement celebration for Diane Fisher of the Jewish Community Relations Council.
- Vice Mayor Badame stated she attended the West Valley Sanitation District Authority Board meeting and observed the December 20th Finance Commission meeting which was cancelled due to lack of a quorum.
- Mayor Ristow stated she attended the Cities Association Holiday Party, the Silicon Valley Bike Coalition Open House and Members Party, the Safe Routes to School (SR2S) Volunteer Luncheon, the Azerbaijani Solidarity Concert, taught Bike Skills to 5th Graders, took a Horse Drawn Carriage Ride and thanked the Chamber of Commerce, and announced a Hannukah on Main event to be held on December 22nd at 5 p.m. on the Civic Center Lawn.
PAGE 2 OF 5
SUBJECT: DRAFT Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023
Manager Matters
- Announced free valet parking service is available through Saturday, December 24. - Announced Town Administrative Offices will be closed Friday, December 23 and will reopen on Tuesday, January 3, 2023. - Announced the Library will be closed December 23-26 and December 30, 2022 - January 2, 2023.
- Announced a new online business license module will be implemented soon, and additional information is available on the Town website.
CONSENT ITEMS
1. Approve Minutes of the December 6, 2022 Town Council Meeting.
2. Approve Minutes of the December 13, 2022 Town Council Special Meeting.
3. Approve Minutes of the December 13, 2022 Town Council Special Meeting Regarding Commission Interviews.
4. Adopt a Resolution Reaffirming Resolution 2021-044 and Making Findings Pursuant to Government Code Section 54953, as Amended by Assembly Bill 361, and, Due to Health and Safety Concerns for the Public, Authorizing the Use of Hybrid Meetings for the Town Council and the Continued Use of Virtual Meetings for Boards and Commissions While Town Staff Makes the Necessary Arrangements to Transition to Hybrid Meetings for All Town Boards, Commissions, and Committees. RESOLUTION 2022-076
5. Reaffirm the Town Council Code of Conduct Policy.
6. Adopt 2023 Council Committee Appointments.
7. Annual Comprehensive Financial Report (ACFR):
a. Receive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2022, and
b. Adopt a Resolution Confirming June 30, 2022 Fund Balances in Accordance Fiscal Year 2021/22 Final Audit and Town Council General Fund Reserve Policy. RESOLUTION 2022- 077
8. Approve a First Amendment to the Agreement with Turbo Data Systems, Inc. in the Amount of $110,774 for a Total Amended Agreement Amount Not to Exceed $206,041.54 for a Three-Year Extension of Parking Citation and Permit Parking Processing Services.
9. Authorize the Continuation of the Business License Late Fee Penalty Suspension into the 2023 Calendar Year.
10. Authorize the Town Manager to Execute an Assignment of Agreement with Bartel Associates, LLC to Assign the Agreement to Foster and Foster Consulting Actuaries, Inc.
Council Member Hudes pulled item #7.
Opened public comment.
No one spoke.
Closed public comment.
PAGE 3 OF 5
SUBJECT: DRAFT Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023
Consent Items – continued
MOTION: Motion by Council Member Rennie to approve items 1-10, exclusive of item 7.
Seconded by Vice Mayor Badame.
VOTE: Motion passes unanimously.
VERBAL COMMUNICATIONS
Chris Wiley
- Requested Council “bury the hatchet” by ripping up a piece of paper with a picture of a hatchet that was distributed to each Council Member.
LOC
- Commented on hate speech and how to express hurt feelings.
PUBLIC HEARING
11. Consider a Request for a Continuance for an Appeal of a Planning Commission Decision to Deny a Fence Height Exception Request for Construction of a Six-Foot Fence Located Within the Required Front Yard Setback and a Vehicular Gate Set Back Less than 18 Feet from the Edge of the Adjacent Street on Property Zoned R-1:10. APN 523-04-043. PROPERTY OWNER/APPELLANT: David and Ilana Kohanchi. APPLICANT: Nina Guralnic.
Jennifer Armer, Planning Manager, presented the staff report.
Opened public comment.
No one spoke.
Closed public comment.
Council discussed the item.
MOTION: Motion by Vice Mayor Badame continue an appeal of a Planning Commission decision to deny a Fence Height Exception request for construction of a Six-Foot Fence located within the required front yard setback and a vehicular gate set back less than 18 feet from the edge of the adjacent street on property zoned R-1:10.
APN 523-04-043. PROPERTY OWNER/APPELLANT: David and Ilana Kohanchi.
APPLICANT: Nina Guralnic to a date certain of January 17, 2023 per the appellant’s request. Seconded by Council Member Moore.
VOTE: Motion passed unanimously.
PAGE 4 OF 5
SUBJECT: DRAFT Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023
OTHER BUSINESS
12. Review and Approve the Town’s Response to the 2022 Civil Grand Jury of Santa Clara County Report Entitled, “If You Only Read the Ballot, You’re Being Duped.” Gabrielle Whelan, Town Attorney, provided the staff report.
Opened public comment.
No one spoke.
Closed public comment.
Council discussed the item.
MOTION: Motion by Council Member Hudes to revise the proposed response to the Grand Jury to accept recommendations 1b and 1c and leave the rest of the letter as is.
AMENDMENT: Revise the response to state the Town is planning to implement recommendation 1c if the County Counsel is open to doing the review, then the ballot question would be provided for a five-day review, and if no comment is received within five days, the Town would proceed with its proposed ballot question. Also, the response to the Grand Jury should include the reasons why the Town feels this recommendation is unnecessary and under these specific circumstances, the Town will submit the response. Seconded by Vice Mayor Badame.
VOTE: Motion passes unanimously.
13. Discuss the Housing Element Update and Provide Direction on Next Steps.
Jocelyn Shoopman, Associate Planner, provided the staff report.
Opened public comment.
No one spoke.
Closed public comment.
Council discussed the item.
PAGE 5 OF 5
SUBJECT: DRAFT Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023
Other Business Item #13 – continued
MOTION: Motion by Vice Mayor Badame to bring the Housing Element to the Council for consideration of adoption before January 31, 2023, and utilize the minimum density for calculating the residential capacity of the Site Inventory with the understanding that additional sites may need to be selected to comply with California Housing and Community Development Department (HCD) requirements. Seconded by Council Member Rennie.
VOTE: Motion passed unanimously.
Pulled Consent Item #7
7. Annual Comprehensive Financial Report (ACFR):
a. Receive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2022, and
b. Adopt a Resolution Confirming June 30, 2022 Fund Balances in Accordance Fiscal Year 2021/22 Final Audit and Town Council General Fund Reserve Policy.
Arn Andrews, Assistant Town Manager, provided the staff report.
Opened public comment.
Ron Dickel
- Commented on the item and stated the Commissioners reviewed the report and were given opportunities to make comments.
Closed public comment.
Council discussed the item.
MOTION: Motion by Council Member Rennie to receive the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022, as recommended by the Finance Commission and adopt a resolution confirming June 30, 2022 Fund Balances in accordance with Fiscal Year 2021/22 Final Audit and Town Council General Fund Reserve Policy. Seconded by Council Member Moore.
VOTE: Motion passed 3-2. Vice Mayor Badame and Council Member Hudes voted no.
ADJOURNMENT
The meeting adjourned at 9:02 p.m.
Respectfully submitted:
_____________________________________
Jenna De Long, Deputy Clerk
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
January 10, 2023
The Town Council of the Town of Los Gatos conducted a special meeting utilizing teleconference and electronic means consistent with Government Code Section 54956.5, Town Code Section 8.10.035, and Government Code Section 8630 on Tuesday, January 10, 2023, at 3:30 p.m. to consider adopting a resolution ratifying the Director of Emergency Service’s proclamation of local emergency.
MEETING CALLED TO ORDER AT 3:31 P.M.
ROLL CALL
Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie.
Absent: None
VERBAL COMMUNICATIONS
No one spoke.
OTHER BUSINESS
1. Proclaimed a State of Emergency for the Purposes of Determining By A Majority Vote, Whether, as a Result of the Emergency, Meeting In Person Would Present Imminent Risks to the Health or Safety of Attendees.
Gabrielle Whelan, Town Attorney, presented the staff report.
Opened Public Comment.
No one spoke.
Closed Public Comment.
Council discussed the matter.
MOTION: Motion by Mayor Ristow to proclaim a state of emergency for the purposes of determining by a majority vote whether as a result of the emergency, meeting in person would present imminent risk to the health and safety of attendees.
Seconded by Council Member Badame.
VOTE: Motion passed unanimously.
PAGE 2 OF 2
SUBJECT: Draft Minutes of the Town Council Special Meeting of January 10, 2023 DATE: January 10, 2023
2. Adopt a resolution ratifying the Director of Emergency Service’s Proclamation of Local Emergency Pursuant to Government Code Section 54956.5 and Town Code Section 8.10.035 and Government Code Section 8630. RESOLUTION 2023-001
Arn Andrews, Assistant Town Attorney, presented the staff report.
Opened Public Comment.
No one spoke.
Closed Public Comment.
Council discussed the matter.
MOTION: Motion by Vice Mayor Badame to adopt a resolution ratifying the Director of Emergency Service’s Proclamation of Local Emergency Pursuant to Government Code Section 54956.5 and Town Code Section 8.10.035 and Government Code Section 8630. Seconded by Council Member Moore.
VOTE: Motion passed unanimously.
ADJOURNMENT
The meeting adjourned at 3:47 p.m.
Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Clerk
PREPARED BY: Wendy Wood
Town Clerk
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 1/17/2023
ITEM NO: 3
DATE: January 4, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Reaffirming Resolution 2021-044 and Making Findings Pursuant to Government Code Section 54953, as Amended by Assembly Bill 361, and, Due to Health and Safety Concerns for the Public, Authorizing the Use of Hybrid Meetings for the Town Council and the Continued Use of Virtual Meetings for Boards and Commissions While Town Staff Makes the Necessary Arrangements to Transition to Hybrid Meetings for All Town Boards, Commissions, and Committees
RECOMMENDATION:
Adopt a Resolution reaffirming Resolution 2021-044 and making findings pursuant to Government Code Section 54953, as amended by Assembly Bill 361, and, due to health and safety concerns for the public, authorizing the use of hybrid meetings for the Town Council and the continued use of virtual meetings for Boards and Commissions while Town staff makes the necessary arrangements to transition to hybrid meetings for all Town Boards, Commissions, and Committees.
BACKGROUND:
On March 17, 2020, Governor Newsom issued Executive Order N-29-20, which allowed for relaxed provisions of the Ralph M. Brown Act (Brown Act) that allowed legislative bodies to conduct meetings through teleconferencing without having to meet the strict compliance of the Brown Act. All provisions of Executive Order N-29-20 concerning the conduct of public meetings expired on September 30, 2021.
AB 361 was signed into law by the Governor on September 16, 2021, and went into effect immediately upon signing. It amends the Brown Act to allow local legislative bodies to continue using teleconferencing and virtual meeting technology after the September 30, 2021, expiration of the current Brown Act exemptions as long as there is a "proclaimed state of emergency" by
PAGE 2 OF 3
SUBJECT: Adopt a Resolution Regarding Brown Act Compliance and Teleconferencing DATE: January 4, 2023
BACKGROUND (continued):
the Governor and state or local officials recommend social distancing. Through December, the County of Santa Clara recommended social distancing at public meetings but has recently rescinded that public health order. Given the continued spread of COVID-19 and variants, the Town Council recommends continued social distancing.
DISCUSSION:
The Town Council will continue to provide a remote participation option in addition to inperson meetings. Staff will gradually transition all Town Board, Commission, and Committee meetings to a similar hybrid format.
AB 361 requires public agencies to make findings by majority vote within 30 days of the first teleconferenced meeting under AB 361 and every 30 days thereafter that a state of emergency still exists and that state or local officials continue to impose or recommend measures to promote social distancing.
Town Council adopted Resolution 2021-044 on October 5, 2021 regarding Brown Act compliance and teleconferencing pursuant to Government Code Section 54953, as amended by AB 361, and adopted resolutions on the following dates reaffirming Resolution 2021-044:
November 2, 2021 adopted Resolution 2021-046
November 16, 2021 adopted Resolution 2021-048
December 7, 2021 adopted Resolution 2021-054
December 21, 2021 adopted Resolution 2021-059
January 18, 2022 adopted Resolution 2022-001
February 1, 2022 adopted Resolution 2022-003
February 15, 2022 adopted Resolution 2022-004
March 1, 2022 adopted Resolution 2022-006
March 15, 2022 adopted Resolution 2022-009
April 5, 2022 adopted Resolution 2022-013
April 19, 2022 adopted Resolution 2022-017
May 3, 2022 adopted Resolution 2022-021
May 17, 2022 adopted Resolution 2022-031
June 7, 2022 adopted Resolution 2022-032
June 21, 2022 adopted Resolution 2022-037
July 12, 2022 adopted Resolution 2022-048
August 2, 2022 adopted Resolution 2022-050
August 16, 2022 adopted Resolution 2022-055
September 6, 2022 adopted Resolution 2022-056
PAGE 3 OF 3
SUBJECT: Adopt a Resolution Regarding Brown Act Compliance and Teleconferencing DATE: January 4, 2023
DISCUSSION (continued):
September 20, 2022 adopted Resolution 2022-059
October 4, 2022 adopted Resolution 2022-060
October 18, 2022 adopted Resolution 2022-065
November 1, 2022 adopted Resolution 2022-068
November 15, 2022 adopted Resolution 2022-070
December 6, 2022 adopted Resolution 2022-073
December 20, 2022 adopted Resolution 2022-076
CONCLUSION:
Adopt a Resolution reaffirming Resolution 2021-044 making findings pursuant to Government Code Section 54953, as amended by Assembly Bill 361, and authorizing the continued use of virtual meetings. The Town Council will conduct hybrid meetings and staff will work to prepare for a transition to hybrid meetings for all Town Boards, Commissions, and Committees.
COORDINATION:
This report was coordinated with the Town Attorney and Town Manager’s offices.
FISCAL IMPACT:
There will be no fiscal impact to the Town at this time.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Draft Resolution
1 of 3
Resolution 2023 - Date
ATTACHMENT 1
DRAFT RESOLUTION 2023-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS REAFFIRMING RESOLUTION 2021-044 REGARDING BROWN ACT COMPLIANCE AND TELECONFERENCING PURSUANT TO GOVERNMENT CODE SECTION 54953, AS AMENDED BY ASSEMBLY BILL 361, DURING THE COVID-19 PANDEMIC WHEREAS, on March 4, 2020, the Governor of the State of California declared a state of emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19; and
WHEREAS, on March 12, 2020, the Town Manager of Los Gatos acting in the capacity of Town of Director of Emergency Services, issued a Proclamation of Local Emergency; and WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29-20, which suspended and modified the teleconferencing requirements under the Brown Act (California Government Code Section 54950 et seq.) so that local legislative bodies can hold public meetings via teleconference (with audio or video communications, without a physical meeting location), as long as the meeting agenda identifies the teleconferencing procedures to be used; and
WHEREAS, on March 17, 2020, the Town Council of the Town of Los Gatos ratified the Proclamation of Local Emergency as set forth in Resolution 2020-008 and remains in full force and effect to date; and
WHEREAS, on June 4, 2021, the Governor clarified that the “reopening” of California on June 15, 2021, did not include any change to the proclaimed state of emergency or the powers exercised thereunder; and
WHEREAS, on June 11, 2021, the Governor issued Executive Order N-08-21, which extended the provision of N-29-20 concerning the conduct of public meetings through September 30, 2021, and the Governor subsequently signed legislation revising Brown Act requirements for teleconferenced public meetings (Assembly Bill 361, referred to hereinafter as “AB 361”); and
WHEREAS, on September 16, 2021, Governor Newsom signed AB 361, which added subsection (e) to Government Code section 54953 of the Brown Act, and makes provision for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, the Town Council of the Town of Los Gatos approved Resolution No. 2021- 044 on October 5, 2021, declaring the need for the Town Council, Boards, Commissions, and Committees to continue to meet remotely in order to ensure the health and safety of the
2 of 3
Resolution 2023 - Date
ATTACHMENT 1
public; and
WHEREAS, the Town of Los Gatos remains in a state of emergency due to the continuing spread of COVID-19; and
WHEREAS, given the continued spread of COVID-19 and variants, the Town Council recommends maintaining measures to promote social distancing; and WHEREAS, technology exists that allows full participation from members of the public without requiring in-person attendance at a Town Council, Board, Commission, or Committee meeting.
WHEREAS, the Town Council has considered all information related to this matter, including the associated staff report and other information relating to COVID-19 provided at prior public meetings of the Town Council; and
WHEREAS, the Town Council wishes to conduct hybrid meetings, at which members of the public have the option to participate remotely, and to transition to hybrid meetings for the Town’s Boards, Commissions, and Committees; and
WHEREAS, the Town Council wishes to adopt a Resolution finding that the requisite conditions continue to exist for the legislative bodies of the Town of Los Gatos, as defined in the Brown Act, to conduct remote teleconference meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE:
1. The Town Council hereby finds that the fact set forth in the above recitals and as contained in Resolution 2021-044 are true and correct, and establish the factual basis for the adoption of this Resolution;
2. There is an ongoing proclaimed state of emergency relating to the novel coronavirus causing the disease known as COVID-19 and as a result of that emergency, meeting inperson may present risksto the health orsafety of attendees of in-person meetings of this legislative body and all Town advisory bodies within the meaning of California Government Code section 54953(e)(1).
3. Under the present circumstances, including the risks mentioned in the preceding paragraph, attendeesmay wish to participate in Town meetings remotely.
4. As authorized by Assembly Bill 361, the Town Council wishes to conduct hybrid meetings and to transition to hybrid meetings for the Town’s Boards, Commissions, and Committees.
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Resolution 2023 - Date
ATTACHMENT 1
5. Staff are directed to take all actions necessary to implement this Resolution for all Town Council meetings and Town Board, Commission, and Committee meetings on a rolling basis, in accordance with the foregoing provisions and the requirements of Government Code section 54953, as amended by Assembly Bill 361, including but not limited to returning for ratification of this Resolution every 30 days after teleconferencing for the first time pursuant to Assembly Bill 361 for so long as either of the following circumstances exists: (a) the state of emergency continues to directly impact the ability of this legislative body to meet in person; and/or (b) state or local officials, including but not limited to the County Health Officer, continue to impose or recommend measures to promote social distancing.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 17th day of January 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: ___________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
PREPARED BY: James Watson
Interim Town Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 1/17/2023
ITEM NO: 4
DATE: January 3, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832- 4505):
a. Approve the Plans and Specifications;
b. Authorize Advertising the Project for Bid Upon Receipt of Formal Funding Approval (E-76) from Caltrans; and
c. Authorize the Release of a Request for Proposals for Construction Management, Inspection, and Materials Testing Services.
RECOMMENDATION:
Staff recommends that the Town Council authorize the following actions for the Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832-4505):
a. Approve the Plans and Specifications;
b. Authorize Advertising the Project for Bid Upon Receipt of Formal Funding Approval (E-76) from Caltrans; and
c. Authorize the Release of a Request for Proposals for Construction Management, Inspection, and Materials Testing Services
BACKGROUND:
The construction of a direct bicycle and pedestrian connection between the Los Gatos Creek Trail and Highway 9 was originally identified as a priority project in the Town’s 2017 Bicycle and Pedestrian Master Plan and again in the Town’s 2020 Bicycle and Pedestrian Master Plan Update. The Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (Trailhead Connector Project) is also included as one of the projects in the Town-wide Connect Los Gatos Program, which strives to promote projects that will improve the connectivity, mobility, and safety for pedestrians and bicyclists throughout the Town.
PAGE 2 OF 6
SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832- 4505)
DATE: January 3, 2023
BACKGROUND (continued):
The Trailhead Connector Project has been included in the Town’s Capital Improvement Program Budgets since Fiscal Year (FY) 2018/19. Design work began on the project in October 2019 following a Request for Proposals (RFP) process which resulted in the award of a Consultant Design Services Agreement to the firm of Mott MacDonald Group, Inc. for preparation of the construction documents for the Project. A significant portion of the funding for the design of the Project was obtained from the non-competitive One Bay Area Grant (OBAG) Cycle 2 funding.
To provide the access between the Los Gatos Creek Trail and Highway 9, the project design includes the installation of a pre-fabricated bicycle and pedestrian bridge across Los Gatos Creek just south of Highway 9 and a pedestrian switchback ramp on the north side of Highway
9. The preliminary project design was presented to the Complete Streets and Transportation Commission (CSTC) and to the community in February 2020. Both groups provided valuable input and support for the project. On March 3, 2020, the Town Council approved the preliminary design and authorized staff to proceed to final design. In April 2021, a second community meeting and presentation to the CSTC were held to review the 65 percent complete plans. Following input from the community and the CSTC, the final project plans specifications, and engineer’s estimate (PS&E) were completed and have been reviewed and approved by Caltrans.
A Disadvantaged Business Enterprise (DBE) goal of 21 percent has been identified by Caltrans as an appropriate level of DBE participation for the project construction contract and has been included in the contract documents. The Project will be entirely within the Caltrans right-ofway, which required the Town Council to execute a Maintenance Agreement to document the Town’s responsibilities for the operation and maintenance of the new improvements. The Town and Caltrans executed the Maintenance Agreement in October 2022. Additionally, the project requires the Town to obtain an encroachment permit for the work within the Caltrans right-of-way. The Town has applied for the encroachment permit and is currently awaiting the issuance of the permit from Caltrans.
Construction funding has been identified and on November 15, 2022, the Town Council approved two grant-funding agreements for the project’s construction phase. The project is fully funded at this time. Funding sources include OBAG Cycle 2, the Transportation Fund for Clean Air (TFCA) regional grant, 2016 Measure B Funds, and commitment of up to $1 million of Town local funds.
PAGE 3 OF 6
SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832- 4505)
DATE: January 3, 2023
DISCUSSION:
As the Project includes federal grant funds, staff have been closely coordinating the Project with Caltrans and following the procedures and requirements outlined in the Caltrans Local Assistance Program Manual for federal-aid projects. This includes submittal of the formal “Request for Funding Authorization” package, which is required to be approved by Caltrans and the Federal Highway Administration (FHWA) prior to moving the Project into the bid/advertising/construction phases.
The Town is awaiting this formal funding authorization (referred to as the E-76). For the Town to remain eligible for federal funding reimbursements, the Town must receive formal funding authorization/approval (E-76) prior to advertising the project for construction bids. In light of this, the staff recommendation is for the authorization to advertise and solicit construction bids only upon receipt of the Caltrans/FHWA funding approval/E-76 for the Project. The project team anticipates receiving the Town’s project funding authorization by early February 2023 and Table 1 presents the anticipated schedule for the construction contract.
TABLE 1
Anticipated Construction Schedule
CIP No. 832-4505
Milestone Activity Forecast Date
Town Council Approves PS&E, Solicitation of Bids Authorized 1/17/2023 Town Receives E-76 (Funding approval) from Caltrans/FHWA 2/6/2023 Advertisement Period * 2/6/2023 – 4/6/2023
Bid Opening 4/6/2023
Council Awards Construction Contract 5/16/2023
Notice of Award to Contractor 5/17/2023
Construction Contract Executed 6/15/2023
Notice to Proceed Issued 6/19/2023
Construction 6/2023-11/2024
Construction Close Out 10/2024-11/2024
Town Accepts Final Improvements 12/2024
*Exact advertisement period to be determined following Town’s receipt of funding approval (E-76) from Caltrans/FHWA.
Project management and inspection for a project of this magnitude greatly exceeds the Town’s existing staffing availability. Additionally, the requirements for materials testing will require the use of Caltrans certified technicians and laboratories. To address this need, staff has prepared a Request for Proposals for Construction Management, Inspection, and Materials Testing Services which outlines the additional professional consultant services deemed necessary for
PAGE 4 OF 6
SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832- 4505)
DATE: January 3, 2023
DISCUSSION (continued):
the Town’s successful project delivery. Due to the federal funding involved in the project construction, the project team will follow the Consultant Selection Process as outlined in the Caltrans Local Assistance Procedures Manual for federally funded projects. Based on this process, and should Council authorize the release of the RFP, Table 2 presents the schedule for the Request for Proposal process.
TABLE 2
Anticipated Schedule for Construction Management Services CIP No. 832-4505
Milestone Activity Forecast Date
Town Council Authorizes Release of RFP 01/17/2023
Advertisement Period 01/23/2023 - 02/22/2023
Proposals Due 02/23/2023
Proposal Evaluation, Scoring, and Ranking 02/24/2023 - 03/03/2023 Consultant Interviews 03/09/2023
Consultant Services Agreement Negotiations 03/24/2023
Caltrans Independent Office of Audits and Investigations (IOAI) Review 03/27/2023 - 04/21/2023
Town Council Approves Consultant Services Agreement 05/16/2023 Notice to Proceed 06/01/2023
The engineer’s estimate for the Construction Contract is $4,798,182 which includes a 10 percent contingency. The estimated cost for the Construction Management, Inspection, and Materials Testing Services is anticipated to be in the range of $700,000 to $775,000, which is approximately 15 percent of the construction contract. The project plans and specifications can be viewed via the link at www.losgatosca.gov/lgcthwy9.
CONCLUSION:
Based on the discussion above, staff recommends the approval of the project plans, specifications, and estimate, and the authorization to advertise and solicit bids for the construction of the Project upon receipt of the funding approval E-76 from Caltrans.
Additionally, staff recommends authorization to release the Request for Proposals for Construction Management, Inspection, and Materials Testing Services for the Project.
ALTERNATIVES:
Council could request a postponement of the recommended actions until after the formal Caltrans funding approval (E-76) has been issued to the Town for this project, at which point
PAGE 5 OF 6
SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832- 4505)
DATE: January 3, 2023
ALTERNATIVES (continued):
staff would bring the recommendation for approval of the PS&E and authorization to solicit construction bids forward. This would allow the Council to know when the funding approval was received and the exact dates for the advertising periods.
The postponement would delay the solicitation of bids for the construction of the project and the project team would need to reduce/revise the project schedule to show the resultant advertisement period and the delayed project start and completion dates. This alternative is not recommended due to the fact that this would delay the project construction start and end dates.
COORDINATION:
This project has been coordinated with the Finance Department.
FISCAL IMPACT:
The following has been identified as the source and use of funds for the project:
Budget Costs
OBAG Cycle II Grant - CMAQ $ 3,351,000
GFAR $ 995,377
Measure B (2016 Program Bicycle and Pedestrian Program) $ 693,500 TFCA $ 755,921
Total Budget $ 5,795,798
Construction $ 4,361,984
Construction Contingency (10 percent) $ 436,198
Construction Management (CM)
Consultant CM/RE/Inspection $ 425,926
Town Project Management $ 150,000
Construction Materials Testing $ 300,000
Specialized Testing/Monitoring $ 50,000
Other Project Delivery Costs $ 5,000
Total Expenditures $ 5,729,108
Remaining Budget (Budget - Estimated Costs) $ 66,690
Los Gatos Creek Trail to Highway 9 Trailhead Connector
CIP No. 832-4505
PAGE 6 OF 6
SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832- 4505)
DATE: January 3, 2023
FISCAL IMPACT (continued):
Staff costs are tracked for all projects. Tracking of staff costs allows for accountability in the costs of projects, recovery of costs from grant funded projects, and identification of future staffing needs. This project utilizes a combination of consultant services, temporary staffing that support fluctuating workloads, and full-time budgeted staff. The costs for consultant and temporary staff will be directly associated with this CIP project while full-time staff are accounted for in the department’s operating budget.
ENVIRONMENTAL ASSESSMENT:
Caltrans opted to be the lead agency for the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) environmental clearances for the project. The project is categorically exempt per CEQA Section 15301; PRC 21084; 14 CCR 15300.
PREPARED BY: Bridgette Falconio
Administrative Technician
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 1/17/2023
ITEM NO: 5
DATE: January 17, 2023
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Legal Costs for Colantuono, Highsmith & Whatley, PC:
a. Authorize Payment of Up to An Additional $50,000 for a Total Payment Not to Exceed $150,000 for Fiscal Year 2022/23; and
b. Authorize Expenditure Budget Adjustment in an Amount of $100,000 From Available General Fund Capital/Special Projects Reserve RECOMMENDATION:
Legal Costs for Colantuono, Highsmith & Whatley, PC:
a. Authorize Payment of Up to An Additional $50,000 for a Total Payment Not to Exceed $150,000 for Fiscal Year 2022-23; and
b. Authorize Expenditure Budget Adjustment in an Amount of $100,000 From Available General Fund Capital/Special Projects Reserve.
BACKGROUND:
On March 12, 2021, the Town Attorney retained the law firm of Colantuono, Highsmith & Whatley, PC, to represent the Town of Los Gatos in litigation against Santa Clara County regarding needed repairs to Shannon Road. Because staff anticipated that the litigation would cost under $100,000, the agreement did not go to the Town Council for approval at that time.
Subsequently the Town amended its complaint against the County, which required additional legal services.
PAGE 2 OF 2
SUBJECT: Legal Costs for Shannon Road Litigation and Legal Services Budget Adjustment DATE: January 17, 2023
DISCUSSION:
Staff anticipates requiring an additional $50,000 for legal costs prior to resolution of the matter and is requesting Town Council authorization to make additional payments to the Colantuono law firm of up to that amount. With this action a budget adjustment of $100,000 is needed for the Legal Services Account from the Available General Fund Capital/Special Projects Reserve.
RECOMMENDATION:
Authorize the Town to pay up to an additional $50,000 to Colantuono, Highsmith & Whatley, PC, for legal costs prior to resolution of the matter against Santa Clara County regarding repairs to Shannon Road for a total payment not to exceed $150,000 for fiscal year 2022/23.
COORDINATION:
The Finance Department, Town Attorney’s Office and Town Manager’s Office coordinated this report.
FISCAL IMPACT:
The litigation is being funded from the Attorney Legal Services Account. A budget adjustment of $100,000 is needed for the Legal Services Account to authorize this additional payment to Colantuono, Highsmith & Whatley, PC.
ENVIRONMENTAL ASSESSMENT:
This payment for litigation expenses is not a project defined under CEQA, and no further action is required.
PREPARED BY: Jennifer Armer, AICP
Planning Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 6
DATE: January 12, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution to Extend the Term of the Housing Element Advisory Board
RECOMMENDATION:
Adopt a resolution to extend the term of the Housing Element Advisory Board.
BACKGROUND:
On August 3, 2021, Town Council adopted a resolution (Attachment 1) to establish the Housing Element Advisory Board (HEAB) for the 2023-2031 Housing Element update. This resolution stated that the HEAB would sunset on February 1, 2023, unless extended by the Town Council.
DISCUSSION:
The HEAB has been working diligently, and additional time is necessary so that it can complete the work on the Housing Element update. The remaining work includes review of comments received from the California Department of Housing and Community Development (HCD) in January and development of revisions in response to those and any future comments.
Attachment 2 contains a draft resolution to extend the term of the HEAB until May 31, 2023.
FISCAL IMPACT:
The General Plan Update Fund has monies available to cover the additional HEAB meetings, the overall Housing Element update, and its environmental review.
PAGE 2 OF 2
SUBJECT: HEAB Extension
DATE: January 12, 2023
ENVIRONMENTAL ASSESSMENT:
This action will have no effect on the environment and is not subject to the California Environmental Quality Act.
Attachments:
1. Resolution 2021-032
2. Draft Resolution
ATTACHMENT 1
This Page
Intentionally
Left Blank
1 of 2
Resolution 2023 - January 17, 2023
DRAFT RESOLUTION 2023-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS EXTENDING THE TERM OF
THE HOUSING ELEMENT ADVISORY BOARD
WHEREAS, the Housing Element Advisory Board (HEAB) is intended to be an advisory committee created for the purpose of advising Town staff, providing a forum for public involvement, and making recommendations to the Planning Commission and Town Council on updates to the Housing Element; and
WHEREAS, the HEAB was established by Town Council on August 3, 2021, by Resolution 2021-032; and
WHEREAS, the HEAB has worked diligently on their progress in reviewing the updated Housing Element; and
WHEREAS, additional time is needed for the HEAB to complete their work including review of comments from California Department of Housing and Community Development (HCD) and development of revisions in response to those and any future comments.
NOW, THEREFORE, BE IT RESOLVED, the Town Council of the Town of Los Gatos extends the term of the General Plan Update Advisory Committee to May 31, 2023, unless extended by the Town Council.
ATTACHMENT 2
Draft Resolution to
be modified by Town
Council deliberations
and direction.
2 of 2
Resolution 2023 - January 17, 2023
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 19
th day of January, 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
PREPARED BY: Ryan Baker
Library Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 7
DATE: January 17, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize Budget Adjustments in the Total Amount of $57,046 to Recognize Receipt and Expenditure of Pacific Library Partnership, California State Library, and Library Services & Technology Act Grant Funds RECOMMENDATION:
Authorize budget adjustments in the total amount of $57,046 to recognize receipt and expenditure of Pacific Library Partnership, California State Library, and Library Services & Technology Act Grant Funds.
BACKGROUND:
The Library has been successful in obtaining four grants totaling $57,046 from three different agencies. The first grant in the amount of $5,264 from the Pacific Library Partnership will be used for supplementing purchases of e-books. The second grant from the Pacific Library Partnership in the amount of $12,000 will be used for creating activity spaces in the Children’s Room that are more inclusive to children with different ability types and learning styles. The third grant from the California State Library in the amount of $9,782 will be used for continuing the library’s Zipbook program. The fourth grant in the amount of $30,000 from the Library Services & Technology Act (Federal grant funding administered by the State) was written in collaboration with Environmental Programs Specialist Marina Chislett from the Parks and Public Works Department and will be used for Library programs and services focused on environmental and sustainability topics.
FISCAL IMPACT:
Grant revenues totaling $57,046 will be recorded to account 7801-43343 and be expended from account 7801-61172.
PAGE 2 OF 2
SUBJECT: Approve Receipt and Expenditure of Grants Awarded to Library DATE: January 17, 2023
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PREPARED BY: Nicolle Burnham
Director, Parks and Public Works
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 8
DATE: January 6, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Fifth Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to Increase Compensation for Fiscal Year 2022/23 in an Amount of $100,000 for a Total Annual Amount Not to Exceed $200,000 with the Total Agreement Amount Not to Exceed $1,096,000
RECOMMENDATION:
Authorize the Town Manager to execute a fifth amendment (Attachment 1) to the Agreement for Services with Brightview Tree Care Services, Inc. to increase compensation for Fiscal Year (FY) 2022/23 in an amount of $100,000 for a total annual amount not to exceed $200,000 with the total agreement amount not to exceed $1,096,000.
BACKGROUND:
The Town of Los Gatos utilizes contractual tree trimming and removal services to maintain the Town’s urban forest. On June 5, 2018, the Town Council authorized the Town Manager to execute a five-year Agreement for Services with Brightview Tree Care Services, Inc. for tree trimming and maintenance services. The original agreement included $247,000 for year one of the agreement and $100,000 plus consumer price index adjustments annually thereafter.
On August 7, 2019, Council authorized the Town Manager to execute a first amendment to the Agreement for Services to provide for an additional $100,000 for FY 2019/20.
On June 2, 2020, Council authorized the Town Manager to execute a second amendment to the Agreement for Services to increase compensation for FY 2019/20 and FY 2020/21 in amounts
PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a Fourth Amendment to the Agreement for Services with Brightview Tree Services, Inc.
DATE: January 6, 2022
BACKGROUND (continued):
of $47,000 and $147,000 respectively for total annual contract amounts not to exceed $247,000.
On May 3, 2022, Council authorized the Town Manager to execute a third amendment to the Agreement for Services to increase compensation for FY 2021/22 in an amount of $25,000 for a total annual contract amount not to exceed $125,000.
On June 7, 2022, Council authorized the Town Manager to execute a fourth amendment to the Agreement for Services to increase compensation for FY 2021/22 in an amount of $30,000 for a total annual contract amount not to exceed $155,000.
Attachment 2 provides the original contract and prior amendments.
DISCUSSION:
With the recent rainstorms and high winds, plus ongoing wildfire and drought related danger continuing to affect the Town’s urban forest, work requests for fallen branches, downed trees, dead tree removals, and defensible space needs continue to be high. These maintenance needs can at times occur simultaneously and not seasonally as expected, as is the case this year. This amendment increases the Brightview Tree Service contract by $100,000 to provide priority and emergency work to continue through the remainder of the fiscal year. Staff intends to issue a new Request for Proposals for Tree Services in spring 2023.
CONCLUSION:
Authorize the Town Manager to execute a fifth amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to increase compensation for FY 2022/23 in an amount of $100,000 for a total annual amount not to exceed $200,000 with the total agreement amount not to exceed $1,096,000.
FISCAL IMPACT:
The Adopted FY 2022/23 Operating Budget has sufficient funds for tree maintenance. This action will have no additional fiscal impact.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a Fourth Amendment to the Agreement for Services with Brightview Tree Services, Inc.
DATE: January 6, 2022
Attachments:
1. Fifth Amendment to the Agreement for Services
2. Original Agreement Including the First, Second, Third and Fourth Amendment to Agreement for Services
Brightview Tree Care Services, Inc. – Fifth Amendment to Agreement for Services
FIFTH AMENDMENT TO AGREEMENT
This FIFTH AMENDMENT TO AGREEMENT is dated for identification this ___ day of January 2023 and amends that certain fourth Amendment to Agreement for Services dated June 25, 2022, made by and between the Town of Los Gatos, ("Town,") and Brightview Tree Services, Inc. (“Service Provider”).
RECITALS
A. Town and Service Provider entered into a Agreement for Services on June 5, 2018, (“Agreement”), a First Amendment to Agreement for Services on August 20, 2019, a Second Amendment to Agreement for Services on June 2, 2022, a Third Amendment to Agreement for Services on April 18, 2022, a Fourth Amendment to Agreement for Services on June 25, 2022 copies of which are attached hereto and incorporated by reference as Attachment 1 to this Amendment.
B. Town desires to amend the Agreement for Services to provide additional funds for FY 2021/22.
AMENDMENT
1. 2.6 Compensation – amendment shall read:
Compensation for year 1 (Fiscal Year 2018/19) of this agreement was $247,000.
Compensation for year 2 (Fiscal Year 2019/20) of this agreement was $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
Compensation for year 3 (Fiscal Year 2020/21) of this agreement was $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
Compensation for year 4 (Fiscal Year 2021/22) of this agreement shall increase $30,000, for a total amount not to exceed $155,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).
The adjustment shall be based upon the CPI published on December 31 of the preceding year.
ATTACHMENT 1
Brightview Tree Care Services, Inc. – Fifth Amendment to Agreement for Services Compensation for year 5 (Fiscal Year 2022/23) of this agreement shall increase $100,00 for a total amount not to exceed $200,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).
The adjustment shall be based upon the CPI published on December 31 of the preceding year.
The total agreement amount shall not to exceed $1,096,000.
2. All other terms and conditions of the Agreement remain in full force and effect IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment.
Town of Los Gatos: Approved as to Consent:
_______________________________ ______________________________ Laurel Prevetti, Town Manager Print Name, Title
Department Approval:
_______________________________________
Timm Borden
Interim Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Shelley Neis, MMC, CPMC, Town Clerk
ATTACHMENT 2
BrightView Tree Care Services Inc. – Third Amendment to Agreement for Services
THIRD AMENDMENT TO AGREEMENT FOR SERVICES
This THIRD AMENDMENT TO AGREEMENT is dated for identification this 18th day of April 2022 and amends that certain Second Amendment to Agreement for Services dated June 2, 2020, made by and between the Town of Los Gatos, ("Town,") and BrightView Tree Care Services Inc. (“Service Provider”).
RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 5, 2018, (“Agreement”), and a First Amendment to Agreement for Services on August 20, 2019, and a Second Amendment to Agreement for Services on June 2, 2020, copies of which are attached hereto and incorporated by reference as Attachment 1 to this Amendment.
B. Town desires to amend the Agreement for Services to provide additional funds for FY 2021/22.
AMENDMENT
1. 2.6 Compensation – amendment shall read:
Compensation for year 1 (Fiscal Year 2018/19) of this agreement was $247,000.
Compensation for year 2 (Fiscal Year 2019/20) of this agreement was $247,000. and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
Compensation for year 3 (Fiscal Year 2020/21) of this agreement was $247,000, and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
Compensation for year 4 (Fiscal Year 2021/22) of this agreement shall increase $25,000, for a total amount not to exceed $125,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).
The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100,000.
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
BrightView Tree Care Services Inc. – Third Amendment to Agreement for Services
Compensation for year 5 (Fiscal Year 2022/23) of this agreement shall remain the same:
a total amount not to exceed $100,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).
The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100,000.
The total agreement amount shall not to exceed $966,000.
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.
Town of Los Gatos BrightView Tree Care Services Inc. by:
By: _______________________________ ______________________________ Laurel Prevetti, Town Manager
______________________________
Name/Title
Attest:
______________________________
Department Approval:
_______________________________________
Timm Borden
Interim Director of Parks and Public Works
Approved as to Form:
______________________________
Robert Schultz, Interim Town Attorney Shelley Neis, CMC, Town Clerk DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC Michael Black / General Manager
5/16/2022
5/16/2022
5/17/2022
5/17/2022
5/17/2022
BrightView Tree Care Services Inc. – Second Amendment to Agreement for Services
SECOND AMENDMENT TO AGREEMENT FOR SERVICES
This SECOND AMENDMENT TO AGREEMENT is dated for identification this 2ND day of June 2020 and amends that certain First Amendment to Agreement for Services dated August 20, 2019, made by and between the Town of Los Gatos, ("Town,") and BrightView Tree Care Services Inc. (“Service Provider”).
RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 5, 2018, (“Agreement”), and a First Amendment to Agreement for Services on August 20, 2019, copies of which are attached hereto and incorporated by reference as Attachment 1 to this Amendment.
B. Town desires to amend the Agreement for Services to provide additional funds for FY 2019/20 and 2020/21.
AMENDMENT
1. 2.6 Compensation – amendment shall read:
Compensation for year 1 (Fiscal Year 2018/19) of this agreement was $247,000.
Compensation for year 2 (Fiscal Year 2019/20) of this agreement shall increase $47,000, for a total annual amount not exceed $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
Compensation for year 3 (Fiscal Year 2020/21) of this agreement shall increase $147,000, for a total annual amount not exceed $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
Compensation for years 4 and 5 (Fiscal Years 2021/22 and 2022/23) of this agreement shall not exceed $100,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
DocuSign Envelope ID: C01F6C1B-521B-4630-B3FA-8EFFD2AE3C42 DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
BrightView Tree Care Services Inc. – Second Amendment to Agreement for Services
If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100,000.
The total agreement amount shall not to exceed $941,000.
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.
Town of Los Gatos BrightView Tree Care Services Inc. by:
By: _______________________________ ______________________________ Laurel Prevetti, Town Manager
______________________________
Department Approval: Name/Title
_______________________________________
Matt Morley
Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Robert Schultz, Town Attorney Shelley Neis, CMC, Town Clerk DocuSign Envelope ID: C01F6C1B-521B-4630-B3FA-8EFFD2AE3C42 General Manager
6/18/2020
6/22/2020
6/22/2020
6/22/2020
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
AGR lq• 150
IHH
FIRST AMENDMENT TO AGREEMENT FOR SERVICES
This FIRST AMENDMENT TO AGREEMENT is dated for identification this 20' t' day of August 2019 and amends that certain Agreement for Services dated June 5, 2018, made by and between the Town of Los Gatos, (" Town,") and BrightView Tree Care Services Inc. (" Service Provider").
RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 5, 2018, Agreement"), a copy of which is attached hereto and incorporated by reference as Attachment 1 to this Amendment.
B. Town desires to amend the Agreement for Services to provide additional funds for FY 2019/ 20.
AMENDMENT
1. 2. 6 Compensation shall read: Compensation for the first year shall not exceed $ 247, 000, inclusive of all costs. Payment shall be based upon Town approval of each task.
Compensation for year two of this agreement shall not exceed $ 200, 000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco — Oakland — San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.
Compensation for years three through five of this agreement shall not exceed $ 100, 000 annually and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco — Oakland — San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items ( CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100, 000.
2. All other terms and conditions of the Agreement remain in full force and effect.
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.
Town of Los Gatos
BY._/
laurel Prevetti, Town Manager
Department Approval:
0 Mat Morley
Director of Parks and Pu lic W rks
Approved as to Form:
Robert Sc u z, Town Attorney
2of2
BrightView Tree Care Services Inc. —First Amendment to Agreement for Services BrightViewTree Care Services Inc. by:
Name/ Title
Attest:
Shelley Neis, CIVIC, To Jerk,
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
AGR_lS IY,:j_
AGREEMENT FOR SERVICES IHH ____ _
THIS AGREEMENT is dated for identification this 5th of June 2018 and is made by and between TOWN OF LOS GATOS, a California municipal corporation, ("Town") and BrightView Tree Care Services, ("Service Provider"), whose address is 530 Aldo Avenue, San Jose, CA 95054. This Agreement is made with reference to the following facts.
I. RECITALS
1.1 The Town desires to engage Service Provider to provide tree trimming maintenance services.
1.2 The Service Provider represents and affirms that it is willing to perform the desired work pursuant to this Agreement.
1.3 Service Provider warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Service Provider acknowledges Town has relied upon these warranties to retain Service Provider.
2.1 2.2
2.3 2.4
2.5 It. AGREEMENT
Scope of Services. Service Provider shall provide services as described in that certain Proposal sent to the Town on April 25, 2018, which is hereby incorporated by reference and attached as Exhibit A.
Term and Time of Performance. The effective date of this Agreement shall begin on July 1, 2018 and will continue through June 30, 2023, subject to appropriation of funds, notwithstanding any other provision in this agreement.
Compliance with Laws. The Service Provider shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Service Provider represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Service Provider to practice its profession. Service Provider shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the Town oflos Gatos.
Sole Responsibility. Service Provider shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.
Information/Report Handling. All documents furnished to Service Provider by the Town and all reports and supportive data prepared by the Service Provider under this Agreement are the Town's property and shall be delivered to the Town upon the completion of services or Agreement for Services - BrightView Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
at the Town' s written request. All reports, information, data, and exhibits prepared or assembled by Service Provider in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Service Provider shall not make any of these documents or information available to any individual or organization not employed by the Service Provider or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Service Provider pursuant to this Agreement are for the purpose of evaluating a defined project, and Town' s use of the information contained in the reports prepared by the Service Provider in connection with other projects shall be solely at Town' s risk, unless Service Provider expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Service Provider which is and has been confirmed in writing by Service Provider to be a trade secret of Service Provider.
2. 6 Compensation. Compensation for services shall not exceed $ 247, 000 for the first year, inclusive of all costs. Payment shall be based upon Town approval of each t k.
Compensation for years two through five of this agreement shall not exceed $100,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco — Oakland — San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items ( CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $ 100, 000.
2. 7 Failure to Perform. It is mutually agreed by SERVICE PROVIDER and TOWN that in the event that performance of the work by SERVICE PROVIDER under this Agreement is not completed as scheduled, TOWN will suffer damages and will incur other costs and expenses of a nature and amount which is difficult or impractical to determine. The Parties agree that by way of ascertaining and fixing the amount of damages, costs and expenses, and not by way of penalty, SERVICE PROVIDER shall pay to TOWN the sum of one hundred dollars ($ 100. 00) per location per scheduled service in liquidated damages for every missed service beyond three missed services in a month in addition to reducing the monthly payment by the cost of that service. In the event that the liquidated damages are not paid, SERVICE PROVIDER agrees that TOWN may deduct the amount of unpaid damages from any money due or that may become due to SERVICE PROVIDER under this Agreement.
2. 8 Schedule. Service Provider shall provide a schedule to the Town prior to beginning work.
The schedule shall identify dates of service for each location. Schedule changes shall be approved by the Town with 24- hour notice. Each missed location shall be considered a failure to perform, unless the contractor provides advance notice of schedule change.
2. 9 Billin¢. Billing shall be monthly by invoice within thirty ( 30) days of the rendering of the service and shall be accompanied by a detailed explanation of the work performed by whom at what rate and on what date. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form.
Agreement for Services — BrightView Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
Payment shall be net thirty ( 30) days. All invoices and statements to the Town shall be addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P. O. Box 655
Los Gatos, CA 95031- 0655
2. 10 Availability of Records. Service Provider shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Service Provider shall make these records available to authorized personnel of the Town at the Service Provider offices during business hours upon written request of the Town.
2. 11 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Service Provider. No portion of these services shall be assigned or subcontracted without the written consent of the Town.
2. 12 Independent Service Provider. it is understood that the Service Provider, in the performance of the work and services agreed to be performed, shall act as and be an independent Service Provider and not an agent or employee of the Town. As an independent Service Provider, he/ she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee( s). With prior written consent, the Service Provider may perform some obligations under this Agreement by subcontracting but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Service Provider agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Service Provider shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of compensation, unless such litigation is brought by Service Provider or is based on allegations of Service Provider' s negligent performance or wrongdoing.
2. 13 Conflict of Interest. Service Provider understands that its professional responsibilities are solely to the Town. The Service Provider has and shall not obtain any holding or interest within the Town of Los Gatos. Service Provider has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Service Provider warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest, should it discover it has done so and shall, at the Town' s sole discretion, divest itself of such interest. Service Provider shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person Service Provider discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement Service Provider shall promptly notify Town of this Agreement for Service$ - Brightyiew Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
employment relationship, and shall, at the Town' s sole discretion, sever any such employment relationship.
2. 14 Equal Employment Opportunity. Service Provider warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Service Provider nor its subService Providers do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act.
Ill. INSURANCE AND INDEMNIFICATION
3. 1 Minimum Scope of Insurance:
Service Provider agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/ her and his/ her firm to an amount not less than: one million dollars ($ 1, 000, 000) combined single limit per occurrence for bodily injury, personal injury and property damage.
ii. Service Provider agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/ her and his/ her staff to an amount not less than one million dollars ($ 1, 000, 000) combined single limit per accident for bodily injury and property damage. iii. Service Provider shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Service Provider agrees that all certificates and endorsements are to be received and approved by the Town before work commences.
General Liability:
The Town, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf ofthe Service Provider; products and completed operations of Service Provider, premises owned or used by the Service Provider. ii. The Service Provider' s insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self -insurances maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Service Provider' s insurance and shall not contribute with it.
Agreement for Services — 8rightView Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers.
iv. The Service Provider' s insurance shall apply separately to each insured against whom a claim is made, or suit is brought, except with respect to the limits of the insurer' s liability.
3. 2 All Coverages. Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty ( 30) days' prior written notice by certified mail, return receipt requested, has been given to the Town. Current certification of such insurance shall be kept on file at all times during the term ofthis agreement with the Town Clerk.
3. 3 Workers' Compensation. In addition to these policies, Service Provider shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement.
Further, Service Provider shall ensure that all subService Providers employed by Service Provider provide the required Workers' Compensation insurance for their respective employees.
3. 4
Indemnification. The Service Provider shall save, keep, hold harmless and indemnify and defend the Town its officers, agent, employees and volunteers from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing work which may be occasioned by a willful or negligent act or omissions of the Service Provider, or any of the Service Provider' s officers, employees, or agents or any subService Provider.
IV. GENERALTERMS
4. 1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.
4. 2 Governing Law. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior Court of the County of Santa Clara.
4. 3 Termination of Agreement. The Town and the Service Provider shall have the right to terminate this agreement with or without cause by giving not less than fifteen days ( 15) written notice of termination. In the event of termination, the Service Provider shall deliver to the Town all plans, files, documents, reports, performed to date by the Service Provider.
In the event of such termination, Town shall pay Service Provider an amount that bears the
Agreement for Services- 6rigfrtView Tree Carp Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination.
4.4 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Service Provider.
4. 5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney' s fees, including costs of appeal.
4. 6 Prevailing Wages. In accordance with the provisions of Sections 1770 et sea., of the Labor Code, the Director of the Industrial Relations of the State of California has determined the general prevailing rate of wages applicable to the work to be done. Service Provider will be required to pay to all persons employed on the project by the Service Provider sums not less than the sums set forth in the documents entitled " General Prevailing Wage Determination made by the Director of Industrial Relations pursuant to California Labor Code, part 7, Chapter 1, Article 2, Sections 1770, 1773, 1773. 1." These documents may be obtained from the State of California.
Pursuant to Labor Code section 1725. 5, no Service Provider or sub5ervice Provider may be awarded a contract for public works on a public works project unless registered with the Department of Industrial Relations.
This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations and/ or the Town of Los Gatos.
The Service Provider is required to post notices on Public Works requirements.
4. 7 Notices. Any notice required to be given shall be deemed to be duly and properly given if mailed postage prepaid, and addressed to:
Town of Los Gatos BrightView Tree Care Services
Attn: Town Clerk 530 Aldo Avenue
110 E. Main Street San Jose, CA 95054
Los Gatos, CA 95030
or personally delivered to Service Provider to such address or such other address as Service Provider designates in writing to Town.
4. 8 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the terms and conditions of this Agreement in respect of the Products or Services and any
Agreement for 5ewrces— BrightView Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
attachments to this Agreement, then the terms and conditions of this Agreement shall prevail over attachments or other writings.
4. 9 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Service Provider. No terms, conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party.
Agreement For Services — Bright View Tree Care Services DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.
Town of Los Gatos by:
Laurel Prevetti, Town Manager
Recommended by:
tt Morley, Director of Parks and Public
Works
Approved as to Form:
W 5-QQ
Robert Schultz, Town tto ey
Agreemem for Services — BrightView Tree Care Services
Bri View Tree Care Services, Inc. by:
Mike Carter
Vice President J General Manager
Title
Page g of e
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
ATTACHMENT D
BID PRICE SHEET
For all services described below, unless excluded by the Town in description of services below, the Town shall consider unit prices below to include all labor, equipment, fees of any kind, overhead, insurance, fuel, materials, surcharges, disposal fees, and any other casts associated with and necessary for the Bidder to perform such service - No qualifications, exemptions, or alterations of services described below will be allowed. Failure to comply will result in disqualification of bid.
A. GENERAL SERVICES
DESCRIPTION, WPFH UNIT UNIT ESTIMATED EXTENDED PRICE
PRICE IN WORDS. (PRICE PRICE UNITS
IS INCLUSIVE OF ALL
APPLICABLE TAXES AND
FEES
Annual routine it -.inn b.based
on n: trimming in pre -designed
I districts. Inds or parks on a so Per -tree 7" H 595 eam S 66, 500. 00 cycle, and includes all trees
mall, medium, and lar e- sized .
Service request tree trimming
consist of trimming trees outside
the grid trimming cycle,
2. o- 6`
Per tree 3 @rnsem S 216
7-.. 12- Per tree 10 @Safi exn 950
13" - Is" Per tree 10 0It" own 1. 450
19 -.. 24' Per tree 20 @fl90 exi, S 4, 700
2i and o, er Per tree 10 0 210 each 2,850
Tree removal ( excludes stump
removal)
3 0' - 6" Per tree 5 a $95 earn S 475
7-- 12 - Per tree 15 ® $ 237 each S 3. 555
13- 18 Per tree 20 RS522 earn S10.440
17 - 24 Per tree 10 0 $760 earn S 7. 800
25" and over
5 ® 51, 920 each 9.6m
Stump removal
0.,- 6. Per stump 5 a$57 earn 285
4 7-- 12" Per stump 15 @ $ 114 each S 1. 710
1 t" - 18' Per stump 20 R $171 each 3.420
10-_ 24" Per stump 10 0$228 each S 2, 280
25' and over Per stump 5 osmzeach S 1. 710
A
SUB- TOTAL- G ENERAL
11774a 00 SERVICES Px 1eor, u EXHIBIT
A
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
R _ CREW RENTAL AND EMERGENCY SERVICES
Fully equipped crew as defined. Includes
all labor, equipment, tool, traflk control,
dis osal cosh and aero material marku 1
UNIT
PRICE
ESTIMATED EXTENDED
UNITS PRICE
STRAIGHTTIME
I. 4 Man crew with Equipment Per hour 20 Qi300 S6, 000
2, 3 Man crew with Equipm ni Per hour 40 nR $ 225 9.000
3. 2 Man crew with Equipment Per hour 20 Q 8150 3.000
OV ERTIME/ WEEKENDSIEMERG ENCY
AFTER HOURS CALL OUT
4. 4 Man clew with Equipment Per hour 10 @ $ 350 51800
5. 3 Man crew with Equipment Per hour 10 @ $ 285 2. 850
6. 2 Man crew with Equipment Per hour 20 ® 5190 3, 800
B.
SUB -TOTAL - CREW RENTAL&
EMERGENCY SERVICES 528, 450. Q0
C. OTHER COSTS
DESCRIPTION, WITH UNIT UNIT ESTIMATED EXTENDED PRICE
PRICE IN WORDS. ( PRICE IS PRICE UNITS
INCLUSIVE OF ALL
APPLICABLE TAXES AND
FEES) _
Cost for crown, trees requiring
trimming more than 25ea of
foliage at one nme, or crown
shaping or crown reduction.
l'
041- Per free 3 OS' l2. am S 216
7- 12' Per tree looms S 950
13- 18' Per tree to 06145. arrn S 1, 450
19- 24-' Per tree 10 81m.. tl, S 2, 350
25" and over Per tree 21) 111 S 5, 700
Specialty equipment - 50- ton Per hour 5 05205 each S 1, 325 2- crane per hour Per hour 15 44 S250 win S 3. 750
95- font anal tower per hour
Tice planting and msiillation
services'.
Price includes labor, equipment,
root irrigation device, and
staking; assume trees to be
3, provides by the Town)
Per tree 40 mu3o.« h S 5.200 IS"' gallon Per tree 20 R snow, S 5. 2M 24.. bu Per tree 10 as3sci S 3,aca
16.. box
Per tree 5 gitriorxn S 3, 150
48 box
4 Arbnrist service, & report
Per hour 10 @ 9120 raen S 1200. writmgper hour
Tree watering per day---_
5. Assume I worker watering 8 Per day 40 @ $ 600 oath S 24. 000 hour!----_.-
GPS tree inventory data
6 Per3ree 14000613e. r1,, S42. 000 collection site
SUB - TOTAL - OTHER COST- S 100 491, 00 Fl GRANDTOTAL A* B* C S24666200 P., 11 dll
EXHIBIT A
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 9
DATE: January 10, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Third Amendment to a Consultant Agreement for Executive Recruitment Services with Teri Black & Company, LLC for an Additional Amount of $31,000 with a Total Amount Not to Exceed $170,500 and Authorize an Expenditure Budget Adjustment from Available General Fund Capital/Special Projects Reserve
RECOMMENDATION:
Authorize the Town Manager to execute a Third Amendment (Attachment 4) to a Consultant Agreement for executive recruitment services with Teri Black & Company, LLC (TB&Co) for an additional amount of $31,000 with a total amount not to exceed $170,500 and authorize an expenditure budget adjustment from available General Fund Capital/Special Projects Reserve.
BACKGROUND:
On October 19, 2021, the Town Council authorized the Town Manager to execute an Agreement with TB&Co for executive recruitment services (Attachment 1). On November 16, 2021, the Town Council authorized the Town Manager to execute a First Amendment to the Agreement for three Director recruitments (Attachment 2). On May 17, 2022, the Town Council authorized the Town Manager to execute a Second Amendment to the Agreement for two additional Director recruitments (Attachment 3).
DISCUSSION:
The candidate pool for executive level positions is typically smaller, so it is not unusual for public sector agencies to outsource recruitment processes to executive recruitment search firms. Because executive search firms focus solely on recruitments, they have a vast number of contacts. They also have the resources and relationships to proactively contact candidates directly that may not be actively searching for a new opportunity and encourage those candidates to compete in a specific recruitment.
PAGE 2 OF 2
SUBJECT: Third Amendment to Agreement with Teri Black & Company, LLC DATE: January 10, 2023
CONCLUSION:
Based on TB&Co.’s expertise related to successfully completing several director level recruitments for the Town, staff is requesting authorization for the Town Manager to execute a Third Amendment to the current Agreement for services. Given the competition for talent within the public sector, the Town needs to be positioned to move swiftly if and when an executive vacancy occurs. Staff recommends that the Town Council authorize the Town Manager to execute a Third Amendment to add $31,000 to this Agreement and approve the associated budget adjustment as described under the Fiscal Impact section below.
COORDINATION:
The preparation of this report was coordinated with the Human Resources and Finance Departments, and the Town Attorney’s Office.
FISCAL IMPACT:
The additional cost of $31,000 brings the total not to exceed amount to $170,500. Staff recommends using a portion of the available balance in the Town’s Capital/Special Projects Reserve.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Agreement for Consultant Services
2. First Amendment
3. Second Amendment
4. Proposed Third Amendment
ATTACHMENT 3
THIRD AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES
THIS THIRD AMENDMENT TO AGREEMENT is entered into this 17th day of January, 2023, by and between the Town of Los Gatos, State of California, herein called the “Town,” and Teri Black & Company, LLC (“Consultant”), herein called the “Consultant.”
RECITALS
Town and Consultant entered into a Consultant Services Agreement on October 20, 2021, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 3 to this Amendment.
AMENDMENT
1. Scope of Services of the Agreement is hereby amended to provide executive recruitment services for one additional executive recruitment.
2. Compensation by the Town for the Consultant’s services shall increase by an additional $31,000 of which $21,000 is the professional fee and expenses are not to exceed $10,000. The new notto-exceed total amount for the Agreement is $170,500. The Agreement is here by amended from $139,500 to $170,500.
3. Term. Extend the term through December 31, 2023.
4. All other terms and conditions of the Agreement dated October 20, 2021, remain in full force and effect.
IN WITNESS WHEREOF, the Town and Consultant have executed the Third Amendment to Agreement.
Town of Los Gatos: Consultant:
By: ______________________________ By: ______________________________ Laurel Prevetti Teri Black, President
Town Manager Teri Black & Company, LLC
Department Approval:
__________________________
Salina Flores
Human Resources Director
Approved as to Form: Approved as to Form:
_____________________________________ _____________________________________ Gabrielle Whelan Wendy Wood
Town Attorney Town Clerk
ATTACHMENT 4
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Town Attorney, and Assistant Town Manager 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
FINANCE COMMISSION REPORT
MEETING DATE:01/17/2023
ITEM NO: 10
DATE: January 11, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive Monthly Investment Reports for October and November 2022 RECOMMENDATION:
Receive Monthly Investment Reports for October and November 2022.
DISCUSSION:
Staff is changing the frequency of the reporting from quarterly to monthly to comply with the California Government Code Section 41004.
As of November 30, 2022, the Town’s weighted portfolio yield was 2.03% which exceeded by 2 basis points the Local Agency Investment Fund (LAIF) yield of 2.01% as of the same reporting period. Currently the LAIF portfolio weighted average maturity (WAM) is304 days versus the Town’s longer WAM of 435 days. The Town’s weighted average rate of return of 2.03% at the close of November was 23 basis points higher when compared to the First quarter return of
1.80% reported as of September 30, 2022.
Since September 30, 2022, LAIF yields had climbed from 151 basis points (1.51%) to 201 basis points (2.01%) through the end of November 2022. Staff in coordination with the Town’s investment advisor primarily replaced maturing investments in shorter to medium term maturities in the two- to three-year maturity range. These investments capture current yields that exceed the rates expected to be earned in the State LAIF pool during that same time period. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.
At its most recent meeting in December 2022, the Fed indicated it expected to raise interest rates further in 2023 to approximately 5.25% from its current rate of 4.25% to 4.5%, with the Fed anticipating that 5.25% rate to hold steady for the remainder of calendar year 2023.
PAGE 2 OF 2
SUBJECT: Receive the Monthly Investment Reports for October and November 2022 DATE: January 11, 2023
DISCUSSION (continued):
The Finance Commission was scheduled to receive the reports at its January 10, 2023 meeting.
The item was pulled from the consent calendar and moved to the end of the agenda. Given other items and the time constraint for the meeting, the Commission did not have time to discuss the reports. These reports will be provided again to the Finance Commission for its February meeting.
CONCLUSION:
Staff recommends that the Town Council receive the Monthly Investment Reports for October and November 2022.
Attachments:
1. Monthly Investment Report for October 2022
2. Monthly Investment Report for November 2022
Town of Los Gatos
Summary Investment Information
October 31, 2022
Weighted Average YTM Portfolio Yield: 1.82% Weighted Average Maturity (days) 425 This Month Last Month One year ago
Portfolio Balance $62,569,240 $62,736,952 $59,763,609
Benchmarks/ References:
Town's Average Yield 1.82% 1.80% 1.24%
LAIF Yield for month 1.77% 1.51% 0.20%
3 mo. Treasury 4.09% 3.29% 0.06%
6 mo. Treasury 4.55% 3.97% 0.06%
2 yr. Treasury 4.49% 4.28% 0.50%
5 yr. Treasury (most recent) 4.23% 4.09% 1.19%
10 Yr. Treasury 4.05% 3.84% 1.56%
0 - 1 year
30%
1 - 2 years
30%
2 - 3 years
25%
3 - 5 years
15%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated September 21, 2021 and also in compliance with the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
October 31, 2022
Month YTD
Fund Balances - Beginning of Month/Period $62,736,951.51 $72,886,942.83 Receipts 2,970,841.52 14,361,634.16
Disbursements (3,138,553.40) (24,679,337.36)
Fund Balances - End of Month/Period $62,569,239.63 $62,569,239.63 Portfolio Allocation: % of Portfolio Max. % 0r $ Allowed Per State Law or Policy BNY MM $179,619.69 0.33% 20% of Town Portfolio
US Treasury Notes $9,883,589.53 18.39% No Max. on US Treasuries Government Agency Debenture Notes $23,416,349.00 43.56% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,336,173.01 24.81% 30% of Town Portfolio Local Agency Investment Fund $6,941,939.56 12.91% $75 M per State Law Subtotal - Investments 53,757,670.79 100.00%
Reconciled Demand Deposit Balances 8,811,568.84
Total Treasurer's Fund $62,569,239.63
BNY MM
0.33% US Treasury Notes
18.39%
Government Agency Debenture Notes
43.56%
Corporate Medium Term Bonds
24.8%
Local Agency Investment Fund
12.9%
Portfolio Investment Allocation
0 10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Treasurer's Fund Balances
page 2 Page 94
Town of Los Gatos
Non-Treasury Restricted Fund Balances
October 31, 2022
OCT 22 OCT 22 OCT 22
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:
`
Cert. of Participation 2002 Series A Reserve Fund 688,224.79 $ 1,029.47 $ 1,973.79 $ 687,280.47 Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 132.26 0.27 $ 132.53 Note 1 Cert. of Participation 2002 Lease Payment Fund 65.79 1,973.79 $ 2,039.58 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,282,093.98 2,396.58 1,284,490.56 Note 2 Total Restricted Funds: $ 1,970,516.82 $ 1,973.79 $ 3,426.32 $ 1,973.79 $ 1,973,943.14 CEPPT IRS Section 115 Trust 638,355.08 5,466.39 0.00 $ 643,821.47 Grand Total COP's and CEPPT Trust $ 2,608,871.90 $ 1,973.79 $ 8,892.71 $ 1,973.79 $ 2,617,764.61 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.
Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.
Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.
Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other p
Town of Los Gatos
Statement of Interest Earned
October 31, 2022
Interest by Month
July 2022 $60,107.76
August 2022 61,456.65
September 2022 60,153.38
October 2022 68,965.25
November 2022
December 2022
January 2023
February 2023
March 2023
April 20203
May 2023
June 2023
$250,683.04
Town of Los Gatos Investment Schedule October
2022 Maturity Yield to Interest Interest Interest Days
Deposit Par Original Market Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Date Value Cost Value Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Treasury 91282CAP6 US Treasury Note 6/30/2021 1,000,000.00 995,390.63 957,734.38 10/15/2023 0.33% $ 1,615.44 $ 3,260.06 $ 1,098.60 349 Toyota Motor Credit 89236THA6_1 Corporate Bond 04/12/21 500,000.00 510,580.00 485,471.94 8/25/2023 0.45% $ 9,243.75 $ 2,780.30 $ 770.22 298 Toyota Motor Credit 89236THA6 Corporate Bond 1/11/2022 1,100,000.00 1,107,315.00 1,068,038.27 8/25/2023 0.94% $ 9,240.00 $ 4,812.29 $ 3,481.84 298 US Treasury 91282CDD0 US Treasury Note 1/13/2022 1,100,000.00 1,090,675.78 1,054,023.43 10/31/2023 0.85% $ 3,281.77 $ 4,286.54 $ 3,138.36 365 US Treasury 91282CCN9 US Treasury Note 1/13/2022 1,200,000.00 1,188,375.00 1,160,250.00 7/31/2023 0.75% $ 823.37 $ 4,153.18 $ 3,040.72 273 FFCB 3133EKMX1 Gov. Agency Debenture 8/2/2019 1,000,000.00 1,014,400.00 968,808.22 2/23/2024 1.90% $ 73,775.83 $ 55,756.94 $ 6,451.65 480 FFCB 3133EMBE1 Gov. Agency Debenture 10/8/2020 1,600,000.00 1,598,000.00 1,504,220.59 3/28/2024 0.34% $ 9,453.34 $ 9,279.41 $ 1,811.69 514 FFCB 3133EMCQ3 Gov. Agency Debenture 10/16/2020 2,000,000.00 1,998,000.00 1,912,165.36 10/13/2024 0.31% $ 11,153.33 $ 10,396.24 $ 2,055.85 713 BankAmerica Corp 06051GHC6 Corporate Bond 10/9/2020 1,300,000.00 1,366,287.00 1,295,318.96 12/20/2023 0.66% $ 66,279.92 $ 31,569.88 $ 6,173.44 415 Home Depot 437076BM3 Corporate Bond 8/4/2022 1,000,000.00 991,960.00 939,937.13 1/1/2026 3.04% $ 4,750.00 $ - $ 7,800.71 1158 Home Depot 912828ZW3 US Treasury Note 8/9/2022 350,000.00 322,096.88 313,960.94 95.11 6/30/2025 3.16% $ (95.11) $ - $ 2,392.12 973 IBM 459200JY8 Corporate Bond 3/25/2021 1,000,000.00 1,071,040.00 970,339.39 5/15/2024 0.71% $ 34,166.67 $ 9,358.41 $ 2,491.52 562 US Treasury 912828R28 US Treasury Note 7/2/2019 500,000.00 497,246.09 493,261.72 4/30/2023 1.77% $ 27,046.54 $ 26,507.80 $ 2,980.31 181 Freddie Mac 3137EAEN5 Gov. Agency Debenture 7/19/2019 2,000,000.00 2,072,358.00 1,976,295.56 6/19/2023 1.79% $ 160,416.67 $ 107,829.55 $ 12,314.80 231 FFCB 3133EKVF0 Gov. Agency Debenture 7/22/2019 1,000,000.00 999,630.00 994,936.65 1/17/2023 1.89% $ 55,989.58 $ 55,482.90 $ 6,354.19 78 Treasury 91282CBT7 US Treasury Note 9/30/2022 800,000.00 712,565.18 707,875.00 3/31/2026 4.14% $ - $ - $ 2,630.46 1247 FFCB 3133ENP95 Gov. Agency Debenture 9/30/2022 900,000.00 900,939.60 891,494.81 9/30/2025 4.14% $ - $ - $ 3,222.05 1065 US Treasury 91282CDA6 Gov. Agency Debenture 1/31/2022 1,100,000.00 1,085,222.44 1,057,031.25 9/30/2023 1.07% $ 1,820.74 $ 4,781.92 $ 3,921.18 334 US Treasury 91282CAW1 Gov. Agency Debenture 7/15/2021 1,200,000.00 1,199,437.50 1,146,796.87 11/15/2023 0.27% $ 2,502.72 $ 3,107.52 $ 1,092.07 380 American Honda 02665WCZ2 Corporate Bond 11/27/2019 1,000,000.00 1,012,410.01 957,536.74 6/27/2024 2.12% $ 72,733.34 $ 55,189.68 $ 7,175.82 605 JP Morgan Chase 46625HRS1 Gov. Agency Debenture 9/23/2022 500,000.00 474,660.00 462,877.42 4,355.56 3/15/2026 4.70% $ (4,355.56) $ - $ 2,424.56 1231 Honeywell Int'l. 438516BW5 Corporate Bond 11/20/2019 1,000,000.00 1,014,660.00 957,664.07 7/15/2024 1.64% $ 62,483.33 $ 51,828.99 $ 6,689.37 623 Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2/23/2021 1,000,000.00 1,077,370.00 970,099.77 5/17/2024 0.44% $ 35,150.00 $ 6,129.72 $ 1,532.43 564 FNMA 3135G0V75 Gov. Agency Debenture 10/17/2019 1,100,000.00 1,105,833.30 1,050,134.43 7/2/2024 1.63% $ 52,456.25 $ 48,706.74 $ 6,069.84 610 US Bancorp 91159HHV5 Corporate Bond 12/24/2019 1,000,000.00 1,049,040.00 979,313.57 1/5/2024 2.12% $ 88,218.75 $ 54,380.13 $ 7,278.30 431 FHLB 3133834G3 Gov. Agency Debenture 3/11/2021 1,400,000.00 1,460,522.00 1,377,991.73 6/9/2023 0.19% $ 37,022.22 $ 3,664.98 $ 947.04 221 FFCB 3133EKQA7 Gov. Agency Debenture 10/21/2019 1,000,000.00 1,019,780.00 954,400.43 9/10/2024 1.66% $ 60,031.11 $ 45,130.78 $ 5,647.09 680 PNC Financial 69349LAM0 Corporate Bond 2/7/2022 1,000,000.00 1,033,470.00 989,670.62 6/25/2023 1.49% $ 17,733.33 $ 5,372.34 $ 4,620.97 237 FHLB 3135G05X7 Gov. Agency Debenture 6/10/2022 1,200,000.00 1,102,952.40 1,069,830.90 8/25/2025 3.04% $ 937.50 $ 1,902.68 $ 11,701.47 1029 Treasury 912828ZL7 Gov. Agency Debenture 4/12/2022 1,700,000.00 1,583,927.57 1,539,296.88 4/30/2025 2.72% $ 3,504.49 $ 9,611.14 $ 14,964.18 912 JP Morgan Chase 46625HJT8 Corporate Bond 9/23/2019 1,400,000.00 1,485,414.00 1,382,875.52 2/1/2024 2.39% $ 154,913.89 $ 96,022.89 $ 11,682.31 458 American Honda 02665WDH1 Corporate Bond 2/14/2020 600,000.00 603,756.00 591,047.52 5/10/2023 1.75% $ 28,145.00 $ 25,034.14 $ 3,551.56 191 Treasury 912828V23 US Treasury Note 11/29/2021 1,000,000.00 1,032,933.04 972,968.75 12/31/2023 0.66% $ 13,206.52 $ 3,924.44 $ 2,266.23 426 Treasury 91282CBE0 2 Gov. Agency Debenture 10/7/2021 1,000,000.00 994,768.98 947,070.31 1/15/2024 0.36% $ 964.67 $ 2,587.41 $ 1,196.43 441 FHLB 3130ALH98 Gov. Agency Debenture 2/26/2021 1,000,000.00 997,610.00 940,126.43 2/26/2024 0.33% $ 3,750.00 $ 4,416.63 $ 1,110.93 483 Treasury 912828M80 US Treasury Note 7/22/2019 1,000,000.00 1,006,175.23 998,690.43 11/30/2022 1.81% $ 57,158.47 $ 53,444.10 $ 6,120.69 30 Treasury 912828U57 US Treasury Note 7/31/2019 1,000,000.00 1,011,875.00 973,789.06 11/30/2023 1.84% $ 60,208.33 $ 54,014.24 $ 6,238.26 395 Treasury 912828X70 US Treasury Note 12/30/2019 1,000,000.00 1,010,589.29 961,679.69 4/30/2024 1.75% $ 62,703.30 $ 48,922.73 $ 6,590.90 547 Treasury 912828XT2 US Treasury Note 10/31/2019 1,000,000.00 1,015,667.41 960,000.00 5/31/2024 1.64% $ 51,639.34 $ 44,208.50 $ 5,588.54 578 American Honda 02665WCQ2 Corporate Bond 9/14/2021 950,000.00 1,012,871.00 937,058.14 10/10/2023 0.41% $ 36,924.65 $ 3,232.93 $ 1,375.95 344 FFCB 3133EJ3Q0 Gov. Agency Debenture 8/28/2019 1,500,000.00 1,587,503.75 1,465,477.95 12/21/2023 2.12% $ 121,348.96 $ 64,945.24 $ 7,703.24 416 Freddie Mac 3133EKKT2 Gov. Agency Debenture 6/24/2019 1,550,000.00 1,573,188.00 1,542,347.67 2/8/2023 1.82% $ 117,606.25 $ 86,008.42 $ 9,599.85 100 Treasury 91282CBE0 Gov. Agency Debenture 9/15/2021 650,000.00 647,615.46 615,595.70 1/15/2024 0.28% $ 675.62 $ 1,447.14 $ 618.05 441 Subtotal $ 46,200,000.00 $ 46,636,111.54 $ 44,495,504.20 $ 4,450.67 $ 1,606,624.32 $ 1,103,488.93 $ 205,915.78 BNY MM Money Market 179,619.69 179,619.69 0.00% 1
LAIF State Investment Pool 6,941,939.56 6,941,939.56 1.77% 33,791.70 1 $53,757,670.79 $51,617,063.45 $ 1,606,624.32 $ 1,103,488.93 $ 239,707.48 Matured Assets
IBM 459200HG9 Corporate Bond 8/8/2019 1,000,000.00 995,010.00 8/1/2022 2.05% $ 55,885.42 $ 59,141.32 $ 1,790.47 JP Morgan Chase 46625HJE1 Gov. Agency Debenture 2/11/2020 900,000.00 934,587.00 9/23/2022 1.74% $ 76,537.50 $ 38,210.60 $ 3,733.22 Treasury 912828L57 US Treasury Note 7/22/2019 1,200,000.00 1,197,988.40 9/30/2022 2.09% $ 67,016.39 $ 63,644.66 $ 5,451.87 Total Investments "Matured" $ 10,975.56
Total Interest FY 22_23 Matured and Current $ 250,683.04 Maturity Profile Amount
0-1 year $23,358,334.42
1-2 years $24,310,234.74
2-3 years $3,909,916.45
3-5 years $ 2,179,185.18
$53,757,670.79
Amortized
Institution Cost
BNY Assets $46,636,111.54
BNY MM 179,619.69
LAIF 6,941,939.56
Totals: $53,757,670.79
Market to Cost Position Report
Town of Los Gatos
Summary Investment Information
November 30, 2022
Weighted Average YTM Portfolio Yield: 2.03% Weighted Average Maturity (days) 435 This Month Last Month One year ago
Portfolio Balance $65,273,987 $62,569,240 $61,676,887
Benchmarks/ References:
Town's Average Yield 2.01% 1.82% 1.21%
LAIF Yield for month 1.77% 1.77% 0.20%
3 mo. Treasury 4.38% 4.09% 0.05%
6 mo. Treasury 4.71% 4.55% 0.10%
2 yr. Treasury 4.31% 4.49% 0.52%
5 yr. Treasury (most recent) 3.74% 4.23% 1.15%
10 Yr. Treasury 3.61% 4.05% 1.45%
0 - 1 year
30%
1 - 2 years
30%
2 - 3 years
25%
3 - 5 years
15%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated September 21, 2021 and also in compliance with the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.
ATTACHMENT 2
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
November 30, 2022
Month YTD
Fund Balances - Beginning of Month/Period $62,569,239.63 $72,886,942.83 Receipts 5,801,425.93 20,163,060.09
Disbursements (3,096,678.62) (27,776,015.98)
Fund Balances - End of Month/Period $65,273,986.94 $65,273,986.94 Portfolio Allocation: % of Portfolio Max. % 0r $ Allowed Per State Law or Policy BNY MM $79,480.09 0.15% 20% of Town Portfolio
US Treasury Notes $10,037,973.70 18.65% No Max. on US Treasuries Government Agency Debenture Notes $23,416,349.00 43.52% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,336,173.01 24.78% 30% of Town Portfolio Local Agency Investment Fund $6,941,939.56 12.90% $75 M per State Law Subtotal - Investments 53,811,915.36 100.00%
Reconciled Demand Deposit Balances 11,462,071.58
Total Treasurer's Fund $65,273,986.94
BNY MM
0.15% US Treasury Notes
18.65%
Government Agency Debenture Notes
43.52%
Corporate Medium Term Bonds
24.8%
Local Agency Investment Fund
12.9%
Portfolio Investment Allocation
0 10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Treasurer's Fund Balances
page 2 Page 99
Town of Los Gatos
Non-Treasury Restricted Fund Balances
November 30, 2022
NOV 22 NOV 22 NOV 22
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:
`
Cert. of Participation 2002 Series A Reserve Fund 687,280.47 $ 1,399.90 $ 688,680.37 Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 132.53 0.31 $ 132.84 Note 1 Cert. of Participation 2002 Lease Payment Fund 2,039.58 3.78 $ 2,043.36 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,284,490.56 3,008.68 1,287,499.24 Note 2 Total Restricted Funds: $ 1,973,943.14 $ - $ 4,412.67 $ - $ 1,978,355.81 CEPPT IRS Section 115 Trust 643,821.47 29,920.82 0.00 $ 673,742.29 Grand Total COP's and CEPPT Trust $ 2,617,764.61 $ - $ 34,333.49 $ - $ 2,652,098.10 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.
Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.
Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.
Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other p
Town of Los Gatos
Statement of Interest Earned
November 30, 2022
Interest by Month
July 2022 $60,107.76
August 2022 61,456.65
September 2022 60,153.38
October 2022 68,965.25
November 2022 68,430.71
December 2022
January 2023
February 2023
March 2023
April 20203
May 2023
June 2023
$319,113.75
Town of Los Gatos Investment Schedule November
2022
Maturity Yield to Interest Interest Interest Days
Deposit Par Original Market Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Date Value Cost Value Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Treasury 91282CAP6 US Treasury Note 6/30/2021 1,000,000.00 995,390.63 960,468.75 10/15/2023 0.33% $ 1,615.44 $ 3,260.06 $ 1,366.55 319 Toyota Motor Credit 89236THA6_1 Corporate Bond 04/12/21 500,000.00 510,580.00 487,892.44 8/25/2023 0.45% $ 9,243.75 $ 2,780.30 $ 958.08 268 Toyota Motor Credit 89236THA6 Corporate Bond 1/11/2022 1,100,000.00 1,107,315.00 1,073,363.37 8/25/2023 0.94% $ 9,240.00 $ 4,812.29 $ 4,331.06 268 US Treasury 91282CDD0 US Treasury Note 1/13/2022 1,100,000.00 1,090,675.78 1,056,988.28 10/31/2023 0.85% $ 3,281.77 $ 4,286.54 $ 3,903.81 335 US Treasury 91282CCN9 US Treasury Note 1/13/2022 1,200,000.00 1,188,375.00 1,163,859.37 7/31/2023 0.75% $ 823.37 $ 4,153.18 $ 3,782.36 243 FFCB 3133EKMX1 Gov. Agency Debenture 8/2/2019 1,000,000.00 1,014,400.00 970,232.63 2/23/2024 1.90% $ 73,775.83 $ 55,756.94 $ 8,025.22 450 FFCB 3133EMBE1 Gov. Agency Debenture 10/8/2020 1,600,000.00 1,598,000.00 1,508,219.33 3/28/2024 0.34% $ 9,453.34 $ 9,279.41 $ 2,253.57 484 FFCB 3133EMCQ3 Gov. Agency Debenture 10/16/2020 2,000,000.00 1,998,000.00 1,917,840.74 10/13/2024 0.31% $ 11,153.33 $ 10,396.24 $ 2,557.27 683 BankAmerica Corp 06051GHC6 Corporate Bond 10/9/2020 1,300,000.00 1,366,287.00 1,298,477.34 12/20/2023 0.66% $ 66,279.92 $ 31,569.88 $ 7,679.16 385 Home Depot 437076BM3 Corporate Bond 8/4/2022 1,000,000.00 991,960.00 957,879.31 1/1/2026 3.04% $ 4,750.00 $ - $ 10,460.04 1128 Home Depot 912828ZW3 US Treasury Note 8/9/2022 350,000.00 322,096.88 317,269.53 95.11 6/30/2025 3.16% $ (95.11) $ - $ 3,256.74 943 IBM 459200JY8 Corporate Bond 3/25/2021 1,000,000.00 1,071,040.00 975,063.37 5/15/2024 0.71% $ 49,166.67 $ 9,358.41 $ 3,099.21 532 US Treasury 912828R28 US Treasury Note 7/2/2019 500,000.00 497,246.09 493,847.66 4/30/2023 1.77% $ 27,046.54 $ 26,507.80 $ 3,707.22 151 Freddie Mac 3137EAEN5 Gov. Agency Debenture 7/19/2019 2,000,000.00 2,072,358.00 1,977,773.54 6/19/2023 1.79% $ 160,416.67 $ 107,829.55 $ 15,318.40 201 FFCB 3133EKVF0 Gov. Agency Debenture 7/22/2019 1,000,000.00 999,630.00 996,621.89 1/17/2023 1.89% $ 55,989.58 $ 55,482.90 $ 7,903.99 48 Treasury 91282CBT7 US Treasury Note 9/30/2022 800,000.00 712,565.18 719,406.25 3/31/2026 4.14% $ - $ - $ 5,176.08 1217 FFCB 3133ENP95 Gov. Agency Debenture 9/30/2022 900,000.00 900,939.60 898,884.76 9/30/2025 4.14% $ - $ - $ 6,340.17 1035 US Treasury 91282CDA6 Gov. Agency Debenture 1/31/2022 1,100,000.00 1,085,222.44 1,059,867.18 9/30/2023 1.07% $ 1,820.74 $ 4,781.92 $ 4,877.56 304 US Treasury 91282CAW1 Gov. Agency Debenture 7/15/2021 1,200,000.00 1,199,437.50 1,149,656.26 11/15/2023 0.27% $ 4,002.72 $ 3,107.52 $ 1,358.43 350 American Honda 02665WCZ2 Corporate Bond 11/27/2019 1,000,000.00 1,012,410.01 962,210.06 6/27/2024 2.12% $ 72,733.34 $ 55,189.68 $ 8,926.03 575 JP Morgan Chase 46625HRS1 Gov. Agency Debenture 9/23/2022 500,000.00 474,660.00 475,651.94 4,355.56 3/15/2026 4.70% $ (4,355.56) $ - $ 4,338.68 1201 Honeywell Int'l. 438516BW5 Corporate Bond 11/20/2019 1,000,000.00 1,014,660.00 963,960.61 7/15/2024 1.64% $ 62,483.33 $ 51,828.99 $ 8,320.92 593 Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2/23/2021 1,000,000.00 1,077,370.00 974,035.65 5/17/2024 0.44% $ 49,400.00 $ 6,129.72 $ 1,906.19 534 FNMA 3135G0V75 Gov. Agency Debenture 10/17/2019 1,100,000.00 1,105,833.30 1,053,545.45 7/2/2024 1.63% $ 52,456.25 $ 48,706.74 $ 7,550.29 580 US Bancorp 91159HHV5 Corporate Bond 12/24/2019 1,000,000.00 1,049,040.00 984,049.79 1/5/2024 2.12% $ 88,218.75 $ 54,380.13 $ 9,053.49 401 FHLB 3133834G3 Gov. Agency Debenture 3/11/2021 1,400,000.00 1,460,522.00 1,382,160.43 6/9/2023 0.19% $ 37,022.22 $ 3,664.98 $ 1,178.03 191 FFCB 3133EKQA7 Gov. Agency Debenture 10/21/2019 1,000,000.00 1,019,780.00 957,952.26 9/10/2024 1.66% $ 60,031.11 $ 45,130.78 $ 7,024.42 650 PNC Financial 69349LAM0 Corporate Bond 2/7/2022 1,000,000.00 1,033,470.00 993,945.43 6/25/2023 1.49% $ 17,733.33 $ 5,372.34 $ 5,748.03 207 FHLB 3135G05X7 Gov. Agency Debenture 6/10/2022 1,200,000.00 1,102,952.40 1,083,265.30 8/25/2025 3.04% $ 937.50 $ 1,902.68 $ 14,555.48 999 Treasury 912828ZL7 Gov. Agency Debenture 4/12/2022 1,700,000.00 1,583,927.57 1,551,914.05 4/30/2025 2.72% $ 3,504.49 $ 9,611.14 $ 18,613.99 882 JP Morgan Chase 46625HJT8 Corporate Bond 9/23/2019 1,400,000.00 1,485,414.00 1,386,956.65 2/1/2024 2.39% $ 154,913.89 $ 96,022.89 $ 14,531.65 428 American Honda 02665WDH1 Corporate Bond 2/14/2020 600,000.00 603,756.00 592,837.25 5/10/2023 1.75% $ 33,995.00 $ 25,034.14 $ 4,417.79 161 Treasury 912828V23 US Treasury Note 11/29/2021 1,000,000.00 1,032,933.04 973,671.88 12/31/2023 0.66% $ 13,206.52 $ 3,924.44 $ 2,818.97 396 Treasury 91282CBE0 2 Gov. Agency Debenture 10/7/2021 1,000,000.00 994,768.98 950,742.19 1/15/2024 0.36% $ 964.67 $ 2,587.41 $ 1,488.24 411 FHLB 3130ALH98 Gov. Agency Debenture 2/26/2021 1,000,000.00 997,610.00 943,234.98 2/26/2024 0.33% $ 3,750.00 $ 4,416.63 $ 1,381.89 453 FHLB 3130AQF65 US Treasury Note 11/30/2022 1,300,000.00 1,160,559.40 1,166,829.33 7,177.08 12/21/2026 4.15% $ (7,177.08) $ - $ - 1482 Treasury 912828U57 US Treasury Note 7/31/2019 1,000,000.00 1,011,875.00 974,335.94 11/30/2023 1.84% $ 70,833.33 $ 54,014.24 $ 7,759.79 365 Treasury 912828X70 US Treasury Note 12/30/2019 1,000,000.00 1,010,589.29 964,218.75 4/30/2024 1.75% $ 62,703.30 $ 48,922.73 $ 8,198.44 517 Treasury 912828XT2 US Treasury Note 10/31/2019 1,000,000.00 1,015,667.41 962,734.38 5/31/2024 1.64% $ 61,639.34 $ 44,208.50 $ 6,951.59 548 American Honda 02665WCQ2 Corporate Bond 9/14/2021 950,000.00 1,012,871.00 936,168.88 10/10/2023 0.41% $ 36,924.65 $ 3,232.93 $ 1,711.55 314 FFCB 3133EJ3Q0 Gov. Agency Debenture 8/28/2019 1,500,000.00 1,587,503.75 1,466,647.35 12/21/2023 2.12% $ 121,348.96 $ 64,945.24 $ 9,582.08 386 Freddie Mac 3133EKKT2 Gov. Agency Debenture 6/24/2019 1,550,000.00 1,573,188.00 1,544,142.57 2/8/2023 1.82% $ 117,606.25 $ 86,008.42 $ 11,941.28 70 Treasury 91282CBE0 Gov. Agency Debenture 9/15/2021 650,000.00 647,615.46 617,982.42 1/15/2024 0.28% $ 675.62 $ 1,447.14 $ 768.79 411 Subtotal $ 46,500,000.00 $ 46,790,495.71 $ 44,846,805.54 $ 11,627.75 $ 1,599,513.77 $ 1,050,044.83 $ 255,122.55 BNY MM Money Market 79,480.09 79,480.09 0.00% 1
LAIF State Investment Pool 6,941,939.56 6,941,939.56 2.01% 45,402.09 1 $53,811,915.36 $51,868,225.19 $ 1,599,513.77 $ 1,050,044.83 $ 300,524.64 Matured Assets
IBM 459200HG9 Corporate Bond 8/8/2019 1,000,000.00 995,010.00 8/1/2022 2.05% $ 55,885.42 $ 59,141.32 $ 1,790.47 JP Morgan Chase 46625HJE1 Gov. Agency Debenture 2/11/2020 900,000.00 934,587.00 9/23/2022 1.74% $ 76,537.50 $ 38,210.60 $ 3,733.22 Treasury 912828L57 US Treasury Note 7/22/2019 1,200,000.00 1,197,988.40 9/30/2022 2.09% $ 67,016.39 $ 63,644.66 $ 5,451.87 Treasury 912828M80 US Treasury Note 7/22/2019 1,000,000.00 1,006,175.23 11/30/2022 1.81% $ 67,158.47 $ 53,444.10 $ 7,613.55 Total Investments "Matured" $ 18,589.10
Total Interest FY 22_23 Matured and Current $ 319,113.75 Maturity Profile Amount
0-1 year $24,463,332.09
1-2 years $22,098,922.24
2-3 years $3,909,916.45
3-5 years $ 3,339,744.58
$53,811,915.36
Amortized
Institution Cost
BNY Assets $46,790,495.71
BNY MM 79,480.09
LAIF 6,941,939.56
Totals: $53,811,915.36
Market to Cost Position Report
PREPARED BY: Meredith Johnston
Administrative Technician
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 11
DATE: January 3, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider Objections to the Proposed Abatement of Hazardous Vegetation (Weeds) for Properties Listed on the 2023 Weed Abatement Program Commencement Report and Order the Abatement
RECOMMENDATION:
Consider objections to the proposed abatement of hazardous vegetation (weeds) for properties listed on the 2023 Weed Abatement Program Commencement Report (Attachment 1) and order the abatement.
BACKGROUND:
The Weed Abatement Program is a different, and complementary program to the Brush Abatement Program. Both programs work to protect the Town by preventing fire hazards created by vegetative growth and the accumulation of combustible debris with the goal of voluntary compliance.
The Town of Los Gatos Municipal Code Chapter 11, Article II (also called the Weed Abatement Ordinance) requires property owners to prevent potential fire hazards and provide protection for their property and any nearby structures by clearing hazards. Properties are inspected by the County to confirm the property has been cleared of hazards according to the clearance requirements as defined in the Santa Clara County Weed Abatement program https://weedabatement.sccgov.org/sites/g/files/exjcpb431/files/Program-GuidelinesBrochure.pdf.
PAGE 2 OF 4
SUBJECT: Weed Abatement Program Public Hearing to Consider Objections to the Proposed Abatement of Hazardous Vegetation (Weeds) for Properties Listed on the 2023 Weed Abatement Program Commencement Report and Order the Abatement
DATE: January 3, 2023
BACKGROUND (continued):
The Town Code also authorizes the Town or the Town’s representative to remove the weeds if the property owner fails to do so and to recover those costs through an assessment of the property tax bill for each parcel. The Town has contracted with the County for enforcement of the Town’s Weed Abatement Ordinance.
Typically, a property is placed in the program after a County inspector identifies a potential fire hazard on the premises. Individuals, Fire Departments, Code Enforcement, Public Works, and other public agencies can also submit complaints to the County. Once a parcel is placed in the program, it will remain in the program until it displays compliance for three consecutive years, at which point it will be removed.
The Program is administered by the County on behalf of the Town and is funded from fees assessed on the properties included on the assessment list. Every year while in the program, each of the property owners are charged an annual compliance inspection fee and some incur costs for additional inspections, administrative, and abatement fees.
DISCUSSION:
On December 6, 2022, the Town Council passed Resolution 2022-74 (Attachment 2) declaring hazardous vegetation (weeds) a public nuisance, providing for their abatement, and setting January 17, 2023 as a public hearing for the annual program to consider objections for proposed removal and to order the abatement. On December 13, 2022, the County mailed informational weed abatement program packets to all property owners, including the schedule and price list (Attachment 3).
The weed abatement process consists of eight steps that begin in November and go through August of each year. Currently, the process is at Step 4 on the list as illustrated below.
1. When properties are identified as having hazardous weeds, they are placed in the program, monitored, and must be compliant for three consecutive years in order to be removed from the program. County prepares a report of all properties that have been identified and provides the report to the Town (Attachment 1) (November).
2. Town Council adopts resolution declaring weeds a nuisance and sets a hearing date to hear objections by property owners to having their property listed on the report (Attachment 2) (December).
PAGE 3 OF 4
SUBJECT: Weed Abatement Program Public Hearing to Consider Objections to the Proposed Abatement of Hazardous Vegetation (Weeds) for Properties Listed on the 2023 Weed Abatement Program Commencement Report and Order the Abatement
DATE: January 3, 2023
DISCUSSION (continued):
3. County sends notice to property owners on the report notifying them of the hearing date, along with guidelines on the Weed Abatement Program explaining that they must remove weeds by the abatement deadline or it will be done for them and the cost of the abatement plus administrative costs will be assessed by the County Tax Collector against the respective property (Attachment 3) (December).
4. Town Council holds a public hearing to consider objections by property owners and orders abatement (January).
5. County sends a courtesy letter to property owners on the report notifying them again of the abatement deadline (January).
6. After the April parcel abatement deadline, the properties are inspected by the County to verify that weeds were removed and proceeds with abatement if the inspection fails.
County creates an assessment report of all costs associated with the abatement and provides that report to the Town (June-July).
7. Town notifies the property owners on the assessment report notifying them of the hearing date (July).
8. Town Council holds a public hearing, notes any disputes, and adopts a resolution confirming the assessment report, authorizing collection of the assessment charges (August).
CONCLUSION:
Staff recommends that the Council conduct a public hearing to consider objections to the proposed abatement of hazardous vegetation (weeds) for properties listed on the 2023 Weed Abatement Program Commencement Report (Attachment 1) and order the abatement. At the time of this report’s preparation, staff had not been contacted regarding potential objections.
COORDINATION:
This program has been coordinated with the Santa Clara County Department of Agriculture and Environmental Management.
PAGE 4 OF 4
SUBJECT: Weed Abatement Program Public Hearing to Consider Objections to the Proposed Abatement of Hazardous Vegetation (Weeds) for Properties Listed on the 2023 Weed Abatement Program Commencement Report and Order the Abatement
DATE: January 3, 2023
FISCAL IMPACT:
The County’s Weed Abatement Program administers services for 13 local agencies under a cost recovery model, paid for by fees imposed on the parcel owners. The estimated program cost related to each agency is based on the number of parcels per agency.
Should the funding associated with the assessments fall short of the total program cost, the Town will be billed for a pro-rata share of the program such that the County achieves full cost recovery. If the County needs to request additional funds, this would be absorbed in the PPW Operating Budget. Funds are provided in the Fiscal Year (FY) 2022/23 Operating Budget to cover the cost of publishing all required legal notices.
ENVIRONMENTAL ASSESSMENT:
In accordance with CEQA Guidelines Section 15304, the Town’s weed abatement program is categorically exempt from CEQA as a minor alteration to land.
Attachments:
1. 2023 Weed Abatement Program Commencement Report
2. Resolution 2022-74
3. Abatement Program Packet Mailed to Parcel Owners
Situs APN CITY/STATE
2023 WEED ABATEMENT PROGRAM
COMMENCEMENT REPORT
TOWN OF LOS GATOS
T
Exhibit A
1 831 POLLARD RD 406-26-011 LAM, MITCHELL 831 POLLARD RD LOS GATOS CA 95032-0000 03-0 2 0 CALLE 409-04-049 GUPTA, MOHIT AND APAN, PARUL 4708 GRIMSBY DR SAN JOSE CA 95130-2037 03-0 3 0 409-04-052 UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030 03-0 4 0 409-08-001 UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030 03-0 5 17291 WEDGEWOOD AV 409-14-013 KIM, YOUNG CHANG AND TAI HYUN 17291 WEDGEWOOD AV LOS GATOS CA 95032-1217 03-0 6 14330 LA DR 409-14-020 GERA, NICHOLAS TRUSTEE & ET AL 19341 MONTE VISTA DR SARATOGA CA 95070-6219 03-0 7 14341 BROWNS LN 409-14-035 OKAGAKI, JONATHAN T ET AL 14341 BROWNS LN LOS GATOS CA 95032-1214 03-0 8 14316 MULBERRY DR 409-15-005 SAWHNEY, CHANDANDEEP AND 14316 MULBERRY DR LOS GATOS CA 95032-0000 03-0 9 17631 WEDGEWOOD AV 409-17-010 BELCHER, PHYLLIS TRUSTEE 17631 WEDGEWOOD AV LOS GATOS CA 95032-1220 03-0 10 14821 GOLF LINKS DR 409-27-005 NEAL WALTER E JR TRUSTEE 770 CHESTNUT ST SAN JOSE CA 95110-1805 300 11 27 MONTGOMERY ST 410-17-008 DELLA MAGGIORE, EUGENE D AND 'P O BOX 5068 SAN JOSE CA 95150 03-0 12 25 MONTGOMERY ST 410-17-009 MILLEN, MARK P 25 MONTGOMERY ST LOS GATOS CA 95030-5314 03-0 13 16245 N BURTON RD 424-06-115 SWENSON, C B TRUSTEE 777 1ST ST N FL 5 SAN JOSE CA 95112 03-0 14 0 N BURTON RD 424-06-116 SWENSON, C B TRUSTEE 777 1ST ST N FL 5 SAN JOSE CA 95112 03-0 15 14823 LOS GATOS BL 424-07-065 14823 LGB LLC 2600 EL CAMINO REAL STE PALO ALTO CA 94306-1719 03-0 16 14926 LOS GATOS BL 424-10-009 TSAI, UNDINE Y TRUSTEE 276 LAS MIRADAS DR LOS GATOS CA 95032-7687 03-0 17 15545 BENEDICT LN 424-20-008 NELSON, VICTORIA S 1480 MORAGA RD C MORAGA CA 94556-2005 03-0 18 15710 WINCHESTER BL 424-27-013 DONNELLY, TESSA I ET AL 15710 WINCHESTER BL LOS GATOS CA 95030-3305 03-0 19 0 LAUREL AV 510-41-068 GERTRIDGE, JOHN H ET AL 1080 COLLEGE AV MENLO PARK CA 94025 03- 20 72 FAIRVIEW 510-43-010 MURPHY, ROBERT J 72 FAIRVIEW PLAZA LOS GATOS CA 95030-5818 03- 21 110 N WOOD RD 510-47-038 COVIA COMMUNITIES 2185 CALIFORNIA BL N STE WALNUT CREEK CA 94596-3508 03-0 22 138 WOOD RD 510-47-044 FRENKEL, LILY M AND DRAA, JUSTIN 138 WOOD RD LOS GATOS CA 95030-6740 03-0 23 779 BLOSSOM HILL RD 523-04-037 LI, LINYING AND SUN, SHENGXUAN 779 BLOSSOM HILL RD LOS GATOS CA 95032-3502 03-0 24 15931 BLOSSOM HILL RD 523-25-028 TERRY, NAKA K 15931 BLOSSOM HILL RD LOS GATOS CA 95032-4808 03-0 24 records of 66 Santa Clara County Weed Abatement Program Page 1 Attachment 1
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COMMENCEMENT REPORT
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Exhibit A
25 263 PINEHURST AV 523-43-019 GORMAN, ROBERT L AND THERESA A 263 PINEHURST AV LOS GATOS CA 95032-3917 03-0 26 15941 QUAIL HILL RD 527-02-006 KHOSRAVI, ARVIN AND MOZAFAR, 15941 QUAIL HILL RD LOS GATOS CA 95032-4819 03-0 27 72 DRYSDALE DR 527-02-007 DIEP, JOHN AND ALLISON 5950 COUNTRY CRUZ PY SAN JOSE CA 95138 03-0 28 15790 BLOSSOM HILL RD 527-07-006 TAI, CHAIN CHANG AND HOH, BAO 2941 BANNISTER AV GILROY CA 95020-0000 03-0 29 16084 N GREENRIDGE TR 527-15-002 LUU, RICHARD T 952 5TH ST N SAN JOSE CA 95112-4411 03-0 30 LARGA VISTA DR 527-16-013 GUEVARA MARIA E TRUSTEE & ET AL14975 LARGA VISTA DR LOS GATOS CA 95032-4917 300 31 14960 LARGA VISTA DR 527-16-016 PROUTY, PAUL ROBERT AND 14960 LARGA VISTA DR LOS GATOS CA 95032-4918 03-0 32 14850 BLOSSOM HILL RD 527-18-014 O'DEEGAN, STEPHEN J TRUSTEE 14850 BLOSSOM HILL RD LOS GATOS CA 95032-4901 03-0 33 401 SURMONT DR 527-20-002 BATE, ROSEMARY S 110 BELVALE DR LOS GATOS CA 95032 03-0 34 175 BELWOOD 527-30-032 HOUGH, JUSTIN TRUSTEE 175 BELWOOD GATEWAY LOS GATOS CA 95032-5139 03-0 35 310 SANTA ROSA DR 527-55-036 VERSGROVE, JOHN 310 SANTA ROSA DR LOS GATOS CA 95032-5721 03-0 36 0 ALTA TIERRA CT 527-55-042 OHM, VICTOR J AND VANNA J 3802 AINSLEY CT CAMPBELL CA 95008 03-0 37 118 HARWOOD CT 527-56-020 SIU, MARIAN Y TRUSTEE 118 HARWOOD CT LOS GATOS CA 95032-0000 03-0 38 112 HARWOOD CT 527-57-008 CHANG, WEICHAU AND YISHAN Y 112 HARWOOD CT LOS GATOS CA 95032-5151 03-0 39 615 BLOSSOM HILL RD 529-16-026 DUNN PROPERTIES LP ETAL 301 ALTA LOMA LN SANTA CRUZ CA 95062 300 40 17045 PINE AV 529-20-011 HOANG, HENRY TRUSTEE 215 VISTA DE SIERRA LOS GATOS CA 95030-0000 03-0 41 0 BELLA VISTA AV 529-21-010 MASTERSON, ANTHONY D AND KU- 385 BELLA VISTA AV LOS GATOS CA 95032-5416 03-0 42 BELLA VISTA AV 529-23-015 PETERS JAKE C AND KATHERINE H 'P O BOX 3486 KETCHUM ID 83340 319 43 BELLA VISTA AV 529-23-016 ROSS DANIEL LEE TRUSTEE 188 VILLA AVE LOS GATOS CA 95030 319 44 401 ALBERTO WY 529-23-018 LP ACQUISITIONS LLC 535 MIDDLEFIELD RD STE MENLO PARK CA 94025 03-0 45 0 BELLA VISTA AV 529-23-019 HARLAN, MARILYN S TRUSTEE 4168 RIVA RIDGE FAIR OAKS CA 95628-6429 03- 46 0 BELLA VISTA AV 529-23-020 SHANKER, BENJAMIN J AND SHARI 350 BELLA VISTA AV LOS GATOS CA 95032-5400 03- 47 NO SITUS 529-29-065 DOUGLAS-KIDDER, VASILIKI 10 RESERVOIR RD LOS GATOS CA 95030-0000 03-0 48 0 RESERVOIR RD 529-29-066 DOUGLAS-KIDDER, VASILIKI 10 RESERVOIR RD LOS GATOS CA 95030-0000 03-0 48 records of 66 Santa Clara County Weed Abatement Program Page 2
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COMMENCEMENT REPORT
TOWN OF LOS GATOS
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Exhibit A
49 140 FOSTER RD 529-37-015 MULLANEY, STEPHEN P TRUSTEE & 140 FOSTER RD LOS GATOS CA 95030-0000 03-0 50 (VACANT) NU 529-39-047 GLEMBOCKI, JAROSLAW TRUSTEE 471 SANTA ROSA DR LOS GATOS CA 95032 300 51 16336 SHADY VIEW LN 532-03-034 COULSON, ALLAN A AND ADRIANA C 16336 SHADY VIEW LN LOS GATOS CA 95032-4723 03-0 52 16666 TOPPING WY 532-09-018 PINKSTON, DEBORAH J TRUSTEE 16666 TOPPING WY LOS GATOS CA 95032-5648 03-0 53 0 N TWIN OAKS DR 532-16-006 SURREY FARMS GROUP LLC 401 CARMELINA AV N LOS ANGELES CA 90049 03-0 54 16510 KENNEDY RD 532-17-025 TSAO, WILLIAM AND PENG, ANGELA 16510 KENNEDY RD LOS GATOS CA 95032-6431 03-0 55 16461 KENNEDY RD 532-17-027 WALL, RYAN COMFORT TRUSTEE & 15650 LINDA AV LOS GATOS CA 95032-3714 03-0 56 16481 KENNEDY RD 532-17-028 HAKHU, JAI K AND NALINI 7 SHORE PINE DR NEWPORT COAST CA 92657 03-0 57 17511 PHILLIPS AV 532-39-009 UPLIFT FAMILY SERVICES 251 LLEWWLLYN AV CAMPBELL CA 95008 03-0 58 17435 PHILLIPS AV 532-39-013 SCHWEKUTSCH, MICHAEL AND 17435 PHILLIPS AV LOS GATOS CA 95030-7562 03-0 59 15220 KENNEDY RD 537-15-004 IYAR, SUBRAH S TRUSTEE 15292 KENNEDY RD LOS GATOS CA 95032-0000 03-0 60 14050 SHANNON RD 537-17-027 LEIRER, VON OTTO AND PERZOW, 14050 SHANNON RD LOS GATOS CA 95032-0000 03-0 61 233 FORRESTER RD 537-21-010 PSF REO LLC 2121 PARK PL STE 230 EL SEGUNDO CA 91302 03-0 62 229 FORRESTER RD 537-22-011 SATIA, JAGAT B AND INDIRA 229 FORRESTER RD LOS GATOS CA 95032-6508 03-0 63 210 WOODED VIEW DR 537-23-046 CUNNINGHAM, JAMES F TRUSTEE 210 WOODED VIEW DR LOS GATOS CA 95032-5738 03-0 64 15876 SHANNON RD 537-26-009 REDDY, SHIVPAL G TRUSTEE & ET AL 15876 SHANNON RD LOS GATOS CA 95032 03-0 65 15760 SHANNON RD 537-26-018 KELLERMANN, MARC AND GUPTA, 15760 SHANNON RD LOS GATOS CA 95032-5759 03-0 66 16060 CERRO VISTA DR 537-30-004 BREZOCZKY, BLASIUS TRUSTEE & 16060 CERRO VISTA DR LOS GATOS CA 95032-0000 03-0 66 records of 66 Santa Clara County Weed Abatement Program Page 3
Attachment 2
Attachment 3 Page 112
(over)
TRA 03
Notice to
Destroy
Weeds
NOTICE IS HEREBY GIVEN that on December 6, 2022, pursuant to the provisions of Section
11.20.020 of the Town Code of the Town of Los Gatos, the Town Council of said Town adopted a Resolution declaring that all weeds growing upon any private property or in any street, sidewalk or alley, as defined in Section 11.20.020 of such code, constitute a public nuisance, which nuisance must be abated by the destruction or removal thereof.
NOTICE IS FURTHER GIVEN that property owners shall within thirty days after the adoption of such resolution, or within the time specified in a written agreement with the Director of Parks and Pubic Works of the Town of Los Gatos, or the Director of Parks and Pubic Works' representative, whichever time shall be later, remove all such weeds from their property, the abutting sidewalks, and the abutting half of the street in front, and alleys, if any, behind such property, and between the lot lines thereof as extended, or such weeds will be destroyed or removed and such nuisance abated by the Town of Los Gatos, in which case the cost of such destruction or removal will be assessed upon the lots and lands from which, or from the front or rear of which, such weeds shall have been destroyed or removed; and such cost will constitute a lien upon such lots or lands until paid, and will be collected upon the next tax roll upon which general municipal taxes are collected. All property owners having any objections to the proposed destruction or removal of such weeds are hereby notified to attend a meeting of the Town Council of such Town to be held in the Council Chambers of said Town at 110 East Main Street, Los Gatos, California, on Tuesday, January 17, 2023 at 7:00 p.m., or as soon thereafter as the matter can be heard, when their objections will be heard and given due consideration.
The language and format for this notice is required by California Health and Safety Code Sections 14891 Et. Seq.
(over)
LOS GATOS WEED ABATEMENT PROGRAM SCHEDULE
January 17, 2023 Public hearing to consider objections to Abatement List.
April 15, 2023 PARCEL ABATEMENT DEADLINE
Parcel must be free from hazardous vegetation by this date or Inspector will order abatement.
July-August, 2023 Assessment Hearing to protest abatement charges (Date subject to change, please confirm with City Clerk)
2023 COUNTY WEED ABATEMENT FEES
Properties in the Weed Abatement Program, you will be responsible for an annual inspection fee of $92.00 per parcel.
Please be advised that the property owner of any parcel found to be non-compliant on or after the March 1st deadline will be charged a processing fee of $519.00 and the property will be scheduled for abatement by the County contractor. If you complete the abatement work before the County contractor performs the abatement, you will not incur further charges.
Should the abatement work be performed by a County contractor, you will be assessed the contractor’s charges plus a County administrative fee of $891.00 per parcel. 2023 COUNTY CONTRACTOR’S WEED ABATEMENT PRICE LIST
A) Disc Work**
PARCEL SIZE: 1st Disc + 2nd Disc = Total Discs
0-12,500 sq.ft. $412.39 $165.79 $578.18
12,501sq.ft.- 43,560sq.ft. $412.39 $165.79 $578.18
Larger than 1 Acre $299.56 $146.30 $445.86 (PER ACRE)
** It is required that parcels be disced twice a year. The cost for the first discing is higher due to additional work normally required during the first discing.
B) HANDWORK $5.57 PER 100 Square Feet (SF)
C) FLAIL 6 Foot Mower $7.11 PER 1,000 SF
MOWING 12 Foot Mower $7.11 PER 1,000 SF
D) LOADER WORK $170.40 PER HOUR
E) DUMP TRUCK $157.29 PER HOUR
F) BRUSH WORK $5.32 PER 100 SF
G) DEBRIS REMOVAL $58.52 PER HOUR
H) DUMP FEE 100%
Added to orders with debris removal at 100% of the dump site charge. *Please note this program does not offer herbicide application as a method of abatement.
Sample
MINIMUM FIRE SAFETY STANDARDS (MFSS)
Fire Safety
Through
Vegetation
Management
Fire Resistant Landscaping
Santa Clara County
Consumer and Environmental
Protection Agency
Weed Abatement Program
1553 Berger Drive #1
San Jose, Ca 95112
Phone (408) 282-3145
Fax: (408) 286-2460
[email protected]
1. Vegetation must not exceed 6 inches in height any time after the compliance deadline.
2. Maintain grasses and weeds below 6 inches for 10 feet horizontally on both sides of all roadways, including driveways and access routes. Roads and driveways must maintain a clearance of 10’ W by 13’6” H for all vegetation.
3. Clear flammable vegetation a minimum of 30 feet around any structure, occupied or not. Ornamental vegetation should be kept clear of dead material. Some conditions, such as slopes, may require up to a 100 foot clearance.
4. Parcels one acre or less shall be completely abated. Parcels over one acre up to five acres require 30 foot clearance around structures and perimeter property lines. Additional 30 foot cross fuel breaks may also be required.
5. Parcels larger than five acres require 30 foot clearance around structures and perimeter property lines in addition to 30-foot cross fuel breaks as needed to separate the remaining vegetation into sections no larger than five acres.
6. Keep property clear of accumulation of combustible debris, such as trash, wood, and dead vegetation. Stacked firewood and neatly piled yard waste is not considered to be combustible debris.
7. Keep vegetation cleared from under the eaves of houses.
8. Trim tree branches to at least 10 feet away from chimneys. Trim tree branches up from the ground to provide at least 6 feet of vertical clearance.
9. Clear leaves, pine needles and debris from roof and gutters.
The following is a partial list of fire resistant plants that you may choose to use around your home to reduce the risk of fire. Contact your local nursery for selections appropriate to your area. All grasses, including those purportedly fire resistant, must be maintained below 6” in height.
Trees:
African Sumac
California Pepper
Shrubs:
Bearberry
Carmel Creeper
Carolina Cherry
Catalina Cherry
Escallonia
Hopseed Bush
Lemonade Berry
Groundcover:
Aaron’s Beard
Australian Daisy
Candytuft
Sterile Capeweed
Freeway Daisy
Rock Rose (except Gum
Variety)
The Santa Clara County Weed
Abatement Program
The Santa Clara County Consumer and Environmental Protection Agency and your city are working together to protect your community from fire. We need your help. Please read and follow the directions provided in this brochure regarding fire prevention on your property. The purpose of the Weed Abatement Program is to prevent fire hazards posed by vegetative growth and the accumulation of combustible materials.
The Weed Abatement program is entirely funded from fees charged to residents. Fees will be assessed for any property in the program.
This is to cover the cost of the compliance inspection for the property. Properties that fail the compliance inspection will be charged a failed inspection fee, even if the resident completes the weed abatement. If the property requires abatement by the County contractor, the property owner will be responsible for the actual cost of abatement plus an administrative fee. Properties that meet and maintain the minimum fire safety standards will not be charged other than the annual fee.
Program staff annually inspect parcels at the beginning of the fire season, which is typically in March or April depending on your jurisdiction. If the parcel is not in compliance at the time of inspection, the property owner will be charged a failed inspection fee, and the owner will be sent a courtesy notice as a reminder to abate the weeds. If the weeds are not abated by the property owner, the work will be completed by the County contractor. The property owner will pay the contractor’s fees plus a County administrative fee. All fees will be included in your property tax bill.
Our Goal Is Voluntary Compliance
Property Owner’s Responsiblilities
• Do not allow a fire hazard to exist on your property. The Minimum Fire Safety Standards (MFSS) in this brochure give you guidelines to follow in order to maintain your property and protect against a fire hazard. Please contact our office if you need guidance or have any questions regarding the requirements!
• Make arrangements to have your property maintained throughout the year. Contractors can be found in the yellow pages. You may choose to have the County contractor maintain your property. A current price list is included in your packet.
• Please complete and return the Reply Form provided in your mailing packet by the date on the form. Indicate your preference regarding performance of weed abatement services.
Program Staff Responsibilities
• Weed Abatement Inspectors will perform periodic inspections on all parcels included in the Santa Clara County Weed Abatement Program. Properties that fail the compliance inspection will be charged a failed inspection fee, even if the resident completes the weed abatement.
• Inspectors will order the County contractor to perform all necessary abatement work on any parcel where the MFSS are not met. An attempt will be made to give the owner a courtesy notice prior to releasing the work order.
• The County contractor uses several methods of abatement including discing and handwork. The property owner is free to select whatever method they choose, provided the MFSS of all federal, state and local laws are met.
• The Weed Abatement Program will place inspection costs and the charges for County contractor services plus a County administrative fee on the property owner’s tax bill during the next fiscal year.
Burrowing Owls
Frequently Asked Questions
Q. Why have I received an Abatement Notice?
A. Typically, a property is placed on the program if a Weed Abatement Inspector identified a potential fire hazard on the property. Fire Departments and other agencies also submit complaints to the Weed Abatement Program.
Q. What is required of me now that I am in the Program? A. All property owners are required to maintain their property free of fire hazards throughout the year.
Q. The grasses planted on my property are fire resistant. Are they exempt from the Weed Abatement program?
A. No. Even grasses that possess some fire resistant qualities are not fire proof, and they can add fuel to any site that is subject to a fire. Additionally, fire resistant grasses are rarely found in a pure, homogenous stand but rather are usually found to occur mixed with other common introduced annual grasses that are highly flammable and hazardous in a fire event. Finally, many grasses occur in Santa Clara County and species identification is difficult in the field, especially after the spring when the reproductive portions required for identification have dried and dispersed. Weed Abatement Inspectors can only focus on the presence of grasses and weeds on your property and the Minimum Fire Safety Standards, and not on grass species identification. Therefore, all grasses are required to be below 6 inches in height.
Q. What is the SC County Weed Abatement Program?
A. This is a monitoring program and our primary objective is voluntary compliance. See the first two paragraphs of this brochure for further specifics.
These small owls nest in abandoned ground squirrel
burrows. Discing collapses the burrows and kills the young.
These owls are listed as a state Species of Special Concern and are protected by the federal Migratory Bird Treaty Act. If you suspect burrowing owls on your property you must use another form of weed abatement such as mowing or weedeating. If you request the County perform abatement services, please notify program staff or your City if burrowing owls are known to exist on your property.
More FAQ:
Q. How long will I be on the Program?
A. Your property will remain on the Program for three years. If no hazards are found during that time, your property may be removed from the program.
Q. How much will this cost me?
A. There will be an annual fee to cover the cost of the compliance inspection. If the parcel does not meet the MFSS when it is first inspected in the spring, or if work is required by the County contractor, you will be charged additional fees. Our goal is to ensure that the MFSS are met at the lowest possible cost to the property owner.
Q. How will I be billed?
A. Any charges for the inspection and any abatement work performed will appear as a special assessment on your next property tax bill.
Q. Why have you performed work on my property while the vegetation is still green?
A. Grass, weeds or piles of combustible debris have been declared a public nuisance by your jurisdiction. Abating fire hazards in the spring minimizes the volume of combustible material before the hazards increase and dries out completely during the peak fire season.
Q. Will you notify me prior to beginning abatement work? A. Property owners are responsible for preventing fire hazards on their property. If the MFSS have been met, but further work is necessary, you will receive notice prior to the County contractor performing the work. If the MFSS have not been met, an attempt will be made to give the owner a courtesy notice prior to initial abatement.
Q. Where can I find someone to provide abatement
services?
A. Weed Abatement contractors can be found in the Yellow Pages under “Weed Control Services” or “Discing Services”.
You may have the County contractor perform the necessary work; see your mailing packet for a current price list as administrative costs are charged.
Q. How can I get additional information or assistance
regarding the specific requirements for my property?
A. Weed Abatement Inspectors are available to assist you and answer your questions. Please call our Customer Service line at (408) 282-3145 to schedule a consultation with program staff or to obtain additional information.
Q. I have Grazing Animals do I need to perform abatement? A. Grazing animals do not absolve you of your responsibilities to provide a fire safe condition on your property. You will need to check with our office to determine if grazing is adequate or if additional work is required. Page 119
PREPARED BY: Jennifer Armer, AICP
Planning Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 12
DATE: January 12, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider a General Plan Amendment by Resolution to Add Policies to the Hazards and Safety Element. Location: Town-Wide. General Plan Amendment Application GP-22-002
RECOMMENDATION:
Adopt a General Plan amendment by resolution to add policies to the Hazards and Safety Element.
BACKGROUND:
On June 30, 2022, the Town Council adopted the 2040 General Plan. On August 16, 2022, signatures were submitted to the Town in support of a referendum on the Land Use and Community Design Elements of the adopted 2040 General Plan. The referendum proposes that the Land Use and Community Design Elements of the 2040 General Plan be repealed. Once the referendum signatures were verified by the County Registrar in late September, the 2040 General Plan Land Use and Community Design Elements were suspended in accordance with Elections Code Section 9237.
On October 4, 2022, Town Council adopted a Resolution to confirm suspension of the 2040 General Plan Land Use and Community Design Elements and provide that the 2020 General Plan Land Use and Community Design Elements govern during the suspension period.
State Law requires that any General Plan or Housing Element update conducted after January 1, 2014, include review and update of the Safety Element to address the risk of fire for land classified as very high fire hazard severity zones (VHFHSZ’s) [Gov. Code, § 65302, subd. (g)(3)].
Some of the language in the Community Design Element, adopted as part of the 2040 General
PAGE 2 OF 2
SUBJECT: Hazards and Safety Element Amendment/GP-22-002 DATE: January 12, 2023
BACKGROUND (continued):
Plan, was prepared in coordination with the California Board of Forestry for compliance with this State law.
On October 26, 2022, the General Plan Committee met (Attachment 1, Exhibit 2) and recommended the addition of two policies to the Hazards and Safety Element of the General Plan to ensure that the specific wording identified by the California Board of Forestry was maintained in the General Plan.
On December 14, 2022, the Planning Commission met (Attachments 1 and 2) and recommended that the Town Council add two policies to the Hazards and Safety Element of the General Plan, as recommended by the General Plan Committee and described below.
DISCUSSION:
As part of the review by the California Board of Forestry, two policies within the suspended 2040 General Plan Community Design Element were identified with specific wording added to reference VHFHSZ’s:
Policy CD-5.2 Hillside Development Limitation
Limit hillside development, specifically in VHFHSZ’s, to mitigate wildfire risk.
Policy CD-6.1 Least Restrictive Development Areas
All development, including those in VHFHSZ’s, is required to adhere to the Least Restrictive Development Areas (LRDA) to ensure minimal disturbance of the natural environment and to avoid wildfire and geological hazards.
These two policies are proposed to be added as new policies in the 2040 General Plan Hazards and Safety Element under Goal HAZ-2 and renamed as Policies HAZ-2.10 and HAZ-2.11.
ENVIRONMENTAL ASSESSMENT:
The project is Categorically Exempt pursuant to the adopted Guidelines for Implementation of California Environmental Quality Act, Section 15061(b)(3).
Attachments:
1. December 14, 2022, Planning Commission Staff Report, with Exhibits 1 and 2
2. December 14, 2022, Planning Commission Verbatim Minutes
3. Draft Resolution
PREPARED BY: JENNIFER ARMER, AICP
Planning Manager
Reviewed by: Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 12/14/2022
ITEM NO: 6
DATE: December 9, 2022
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider a General Plan Amendment to Add Policies to the Hazards and Safety Element. Location: Town-wide. General Plan Amendment Application GP-22-002.
RECOMMENDATION:
Consider a General Plan amendment to add policies to the Hazards and Safety Element.
BACKGROUND:
On June 30, 2022, the Town Council approved the 2040 General Plan. On August 16, 2022, signatures were submitted to the Town in support of a referendum on the Land Use and Community Design Elements of the approved 2040 General Plan. The referendum proposes that the Land Use and Community Design Elements of the 2040 General Plan be repealed.
Once the referendum signatures were verified by the County Registrar in late September, the 2040 General Plan Land Use and Community Design Elements were suspended in accordance with Elections Code Section 9237.
On October 4, 2022, Town Council approved a Resolution to confirm suspension of the 2040 General Plan Land Use and Community Design Elements and provide that the 2020 General Plan Land Use and Community Design Elements govern during the suspension period.
State Law requires that any General Plan or Housing Element update conducted after January 1, 2014, include review and update of the Safety Element to address the risk of fire for land classified as very high fire hazard severity zones (VHFHSZ’s) [Gov. Code, § 65302, subd. (g)(3)].
Some of the language in the Community Design Element adopted as part of the 2040 General Plan was prepared in coordination with the California Board of Forestry, for compliance with this State law.
ATTACHMENT 1
PAGE 2 OF 3
SUBJECT: Hazards and Safety Element Update/GP-22-001
DATE: December 9, 2022
BACKGROUND (continued):
On October 26, 2022, the General Plan Committee recommended the addition of two policies to the Hazards and Safety Element of the General Plan, as described below (Exhibit 2).
DISCUSSION:
As part of the review by the California Board of Forestry, two policies within the suspended 2040 General Plan Community Design Element were identified with specific wording added to reference the VHFHSZ:
Policy CD-5.2 Hillside Development Limitation
Limit hillside development, specifically in VHFHSZ’s, to mitigate wildfire risk.
Policy CD-6.1 Least Restrictive Development Areas
All development, including those in VHFHSZ’s, is required to adhere to the Least Restrictive Development Areas (LRDA) to ensure minimal disturbance of the natural environment and to avoid wildfire and geological hazards.
These could be added as new policies in the 2040 General Plan Hazards and Safety Element under Goal HAZ-2 and renamed as Policies HAZ-2.10 and HAZ-2.11.
ENVIRONMENTAL ASSESSMENT:
The project is Categorically Exempt pursuant to the adopted Guidelines for Implementation of California Environmental Quality Act, Section 15061(b)(3).
PUBLIC COMMENTS:
At the time of this report’s preparation, the Town has not received any public comment.
CONCLUSION:
A. Recommendation
Staff recommends that the Planning Commission:
1. Receive and consider public comments;
2. Complete the review of the proposed General Plan amendment; and
3. Forward a recommendation to the Town Council to approve the Draft Resolution (Exhibit 1).
PAGE 3 OF 3
SUBJECT: Hazards and Safety Element Update/GP-22-001
DATE: December 9, 2022
CONCLUSION (continued):
B. Alternatives
Alternatively, the Commission can:
1. Continue the matter to a date certain with specific direction; or
2. Recommend approval with modifications.
EXHIBITS:
1. Draft Resolution
2. October 26, 2022 General Plan Committee Staff Report
This Page
Intentionally
Left Blank
1 of 2
Resolution 20__ - _________________, 20__
Draft Resolution to
be modified by Town
Council deliberations
and direction.
RESOLUTION 20__-___
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING THE HAZARDS AND SAFETY ELEMENT
OF THE GENERAL PLAN.
WHEREAS, the Town of Los Gatos has prepared the 2040 General Plan to update and enhance the 2020 General Plan, along with the Final Environmental Impact Report (Final EIR); and
WHEREAS, on June 30, 2022, Town Council adopted Resolution 2022-046 and certified the Environmental Impact Report for the 2040 General Plan; and WHEREAS, on June 30, 2022, Town Council adopted Resolution 2022-047 approving the 2040 General Plan; and
WHEREAS, on October 4, 2022, Town Council adopted Resolution 2022-064 to confirm the suspension of the 2040 General Plan Land Use and Community Design Elements because sufficient signatures had been gathered to place a referendum on a future ballot with regard to those two Elements, provide that the 2020 General Plan Land Use and Community Design Elements govern during the suspension period, and that the remaining Elements of the 2040 General Plan remain in effect; and
WHEREAS, language required by the State Board of Forestry was included in the Community Design Element, which is now suspended; and
WHEREAS, the Town wishes to move the required language to the Town’s Hazards and Safety Element; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Town Council for public hearing on _______________.
WHEREAS, the Town Council finds as follows:
A. The project is Categorically Exempt pursuant to the adopted Guidelines for Implementation of California Environmental Quality Act, Section 15061(b)(3); and
EXHIBIT 1
2 of 2
Resolution 20__ - _________________, 20__
B. The General Plan amendment is internally consistent with the existing goals and policies of the General Plan and its corresponding elements; and C. That all proceedings have been conducted in compliance with the provisions of Government Code Section 65350 et seq.
NOW, THEREFORE, BE IT RESOLVED:
The Hazards and Safety Element shall be amended to add:
Policy HAZ-2.10 Hillside Development Limitation
Limit hillside development, specifically in VHFHSZ’s, to mitigate wildfire risk.
Policy HAZ-2.11 Least Restrictive Development Areas
All development, including those in VHFHSZ’s, is required to adhere to the Least Restrictive Development Areas (LRDA) to ensure minimal disturbance of the natural environment and to avoid wildfire and geological hazards.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the __
th day of _________, 20__, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
PREPARED BY: JENNIFER ARMER, AICP
Planning Manager
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
GENERAL PLAN COMMITTEE
REPORT
MEETING DATE: 10/26/2022
ITEM NO: 2
DATE: October 21, 2022
TO: General Plan Committee
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider a General Plan Amendment to Add Policies to the Hazards and Safety Element. Location: Townwide. General Plan Amendment Application GP-22- 002.
RECOMMENDATION:
Consider a General Plan amendment to add policies to the Hazards and Safety Element.
BACKGROUND:
On June 30, 2022, the Town Council approved the 2040 General Plan. On August 16, 2022, signatures were submitted to the Town in support of a referendum on the Land Use and Community Design Elements of the approved 2040 General Plan. The referendum proposes that the Land Use and Community Design Elements of the 2040 General Plan be repealed.
Once the referendum signatures were verified by the County Registrar in late September, the 2040 General Plan Land Use and Community Design Elements were suspended in accordance with Elections Code Section 9237.
On October 4, 2022, Town Council approved a Resolution to confirm suspension of the 2040 General Plan Land Use and Community Design Elements and provide that the 2020 General Plan Land Use and Community Design Elements govern during the suspension period.
State Law requires that any General Plan or Housing Element update conducted after January 1, 2014, include review and update of the Safety Element to address the risk of fire for land classified as very high fire hazard severity zones (VHFHSZ’s) [Gov. Code, § 65302, subd. (g)(3)].
Some of the language in the Community Design Element adopted as part of the 2040 General Plan was prepared in coordination with the California Board of Forestry, for compliance with this State law.
EXHIBIT 2
PAGE 2 OF 2
SUBJECT: Hazards and Safety Element Update/GP-20-001
DATE: October 21, 2022
N:\DEV\GPC\GPC Staff Reports\2022\10-26-22\Item 2 - Safety Element Update\Staff Report.Safety Element Update.docx DISCUSSION:
As part of the review by the California Board of Forestry, two policies within the suspended 2040 General Plan Community Design Element were identified with specific wording added to reference the VHFHSZ:
Policy CD-5.2 Hillside Development Limitation
Limit hillside development, specifically in VHFHSZ’s, to mitigate wildfire risk.
Policy CD-6.1 Least Restrictive Development Areas
All development, including those in VHFHSZ’s, is required to adhere to the Least Restrictive Development Areas (LRDA) to ensure minimal disturbance of the natural environment and to avoid wildfire and geological hazards.
For simplicity, staff’s recommendation is to add these as new policies in the 2040 General Plan Hazards and Safety Element under Goal HAZ-2 as Policies HAZ-2.10 and HAZ-2.11.
PUBLIC COMMENTS:
As of the drafting of this report, no comments from the public have been received.
CONCLUSION:
The Committee should review the proposed amendments and provide a recommendation of approval to the Planning Commission and the Town Council.
LOS GATOS PLANNING COMMISSION 12/14/2022
Item #6, General Plan Amendment to
Hazards and Safety Element
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A P P E A R A N C E S:
Los Gatos Planning
Commissioners:
Melanie Hanssen, Chair
Jeffrey Barnett, Vice Chair
Kathryn Janoff
Steve Raspe
Emily Thomas
Town Manager: Laurel Prevetti
Community Development
Director:
Joel Paulson
Town Attorney: Gabrielle Whelan
Transcribed by: Vicki L. Blandin
(619) 541-3405
ATTACHMENT 2
LOS GATOS PLANNING COMMISSION 12/14/2022
Item #6, General Plan Amendment to
Hazards and Safety Element
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P R O C E E D I N G S:
CHAIR HANSSEN: We can move on to the next item,
which is Item 6, which is considering a General Plan
Amendment to add policies to the Hazards and Safety
Element. Location: Town-wide. General Plan Amendment
Application GP-22-002.
I assume we have a Staff Report for this as well.
JENNIFER ARMER: Thank you, Chair and Planning
Commissioners. As stated, this is a proposed amendment to the Hazards and Safety Element of the General Plan.
As you may remember from last year when the Draft
General Plan was brought to the Planning Commission for consideration, one component of the recommended changes from the draft that was prepared by the GPAC were some
modifications required by the State as part of the CAL FIRE review and the Board of Forestry review.
A couple of those changes were included within
the Community Design Element, and because at this point the Community Design Element is on hold because the referendum that qualified for the ballot has not yet been voted upon, Staff is recommending that we take the two policies that included those changes from the State and move them into the Hazards and Safety Element, which is in effect, so that
LOS GATOS PLANNING COMMISSION 12/14/2022
Item #6, General Plan Amendment to
Hazards and Safety Element
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it is clear that we have complied with that requirement for update to the Safety Element, both for the General Plan as a whole as well as for future adoption of the Housing
Element.
This concludes Staff’s presentation, but if you
have any questions I’d be happy to answer.
CHAIR HANSSEN: Thank you for that. Before I take
any questions I’ll just add on that since I’m chairing the General Plan Committee this year that when we heard this at the General Plan Committee it seemed to make a lot of
sense, given that the Community Design Element had been suspended, to have these safety provisions moved into the Hazards and Safety Element, and the only question that I recall coming up during that meeting was just about the number of General Plan amendments, because some people
thought it was limited to four, and so Ms. Armer, if you could let the Commission know what you told us yesterday.
JENNIFER ARMER: Yes, thank you for that
question. We did verify the language of State law that does limit the number of changes to a General Plan within each calendar year. The limitation of four is actually to each of the required elements.
For example, the Safety Element is a required
element, and so we could make up to four changes to the
LOS GATOS PLANNING COMMISSION 12/14/2022
Item #6, General Plan Amendment to
Hazards and Safety Element
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Safety Element. That does not limit possible changes to, say, the Land Use Element or the Housing Element within that same year; those each could have four changes.
In addition, those that are not required
elements, for example, our Community Design Element is not a required element, it is not one of those that’s listed in that law.
CHAIR HANSSEN: So we can take comfort that we’re
not going to bump up against that, especially considering that due to the referendum there’s likely to be more
multiple changes to the General Plan next year, or those two elements.
Commissioner Thomas.
COMMISSIONER THOMAS: Ms. Armer, can you also
confirm—we did talk about this at the General Plan Update Committee meeting—that also when we make an amendment you can clump more than one change together and that just
counts as one, one time?
JENNIFER ARMER: That is correct. It’s not each
individual change we take forward. We are making this group of changes that counts as a single amendment to the General Plan for each of those chapters.
COMMISSIONER THOMAS: Thank you.
LOS GATOS PLANNING COMMISSION 12/14/2022
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Hazards and Safety Element
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CHAIR HANSSEN: I will put it out there to see if
any Commissioners have questions for Staff beyond what we just talked about. I’m not seeing any, and so like our
previous item, this would be a motion to make a
recommendation to Town Council to approve the movement of these items to the Hazards and Safety Element, and we would follow the same process.
Oh, I forgot to do public comment, so let me stop
and see if there are any members of the public that would like to speak on this item.
JENNIFER ARMER: Please raise your hand if you’d
like to speak on this item. I’m not seeing any hands
raised.
CHAIR HANSSEN: Okay, thank you for that. That
being the case, if no one wants to speak on this item, is there a motion to make this recommendation?
Vice Chair Barnett.
VICE CHAIR BARNETT: Concerning our Agenda Item
#5 tonight, I move that we recommend to the Town Council the amendments which are set forth in the Staff Report on that item. I can make the findings that there’s no
possibility that the project will have a significant impact on the environment and is therefore not subject to CEQA,
LOS GATOS PLANNING COMMISSION 12/14/2022
Item #6, General Plan Amendment to
Hazards and Safety Element
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2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
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and also that the Town Code Amendments are consistent with the General Plan.
CHAIR HANSSEN: Ms. Armer has her hand up; so let
me see before I take a second.
JENNIFER ARMER: Thank you. I just wanted clarify
that you are referring to Item #6, the Amendments to the General Plan. You stated Item #5.
VICE CHAIR BARNETT: Gosh, mine looks like #5,
but in any event the appropriate provision of our Staff Report, thank you.
CHAIR HANSSEN: Is there a second? Commissioner
Raspe.
COMMISSIONER RASPE: I second the motion.
CHAIR HANSSEN: Thank you for that. Any further
discussion? Okay, Commissioner Thomas.
COMMISSIONER THOMAS: Yes.
CHAIR HANSSEN: Commissioner Raspe.
COMMISSIONER RASPE: Yes.
CHAIR HANSSEN: Commissioner Janoff.
COMMISSIONER JANOFF: Yes.
CHAIR HANSSEN: Vice Chair Barnett.
VICE CHAIR BARNETT: Yes.
CHAIR HANSSEN: And I vote yes as well, and like
our previous item, since is a recommendation to Town
LOS GATOS PLANNING COMMISSION 12/14/2022
Item #6, General Plan Amendment to
Hazards and Safety Element
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2 3
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10 11
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16 17
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Council I do not believe there are any appeal rights. Ms.
Armer is shaking her head.
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Resolution 2023 - Council Meeting Date
Draft Resolution to
be modified by Town
Council deliberations
and direction.
DRAFT RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AMENDING THE HAZARDS AND SAFETY ELEMENT
OF THE 2040 GENERAL PLAN
WHEREAS, the Town of Los Gatos prepared the 2040 General Plan to update and enhance the 2020 General Plan, along with the Final Environmental Impact Report (Final EIR); and
WHEREAS, on June 30, 2022, Town Council adopted Resolution 2022-046 and certified the Environmental Impact Report for the 2040 General Plan; and WHEREAS, on June 30, 2022, Town Council adopted Resolution 2022-047 approving the 2040 General Plan; and
WHEREAS, on October 4, 2022, Town Council adopted Resolution 2022-064 to confirm the suspension of the 2040 General Plan Land Use and Community Design Elements because sufficient signatures had been gathered to place a referendum on a future ballot with regard to those two Elements, provide that the 2020 General Plan Land Use and Community Design Elements govern during the suspension period, and that the remaining Elements of the 2040 General Plan remain in effect; and
WHEREAS, language required by the State Board of Forestry was included in the 2040 General Plan Community Design Element, which is now suspended; and WHEREAS, the Town wishes to move the required language to the 2040 General Plan Hazards and Safety Element; and
WHEREAS, on October 26, 2022, the General Plan Committee met to consider this matter. The General Plan Committee unanimously recommended that the Town Council adopt this amendment to the Hazards and Safety Element of the General Plan; and WHEREAS, on December 14, 2022, the Planning Commission held a public hearing to consider this matter. The Planning Commission received and considered public comments and unanimously recommended that the Town Council adopt this amendment to the Hazards and Safety Element of the General Plan; and
ATTACHMENT 3
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Resolution 2023 - Council Meeting Date
WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Town Council for public hearing on January 17, 2023; and WHEREAS, the Town Council finds as follows:
A. The project is Categorically Exempt pursuant to the adopted Guidelines for Implementation of California Environmental Quality Act, Section 15061(b)(3); and
B. The General Plan amendment is internally consistent with the existing goals and policies of the General Plan and its corresponding elements; and C. That all proceedings have been conducted in compliance with the provisions of Government Code Section 65350 et seq.
NOW, THEREFORE, BE IT RESOLVED:
The Hazards and Safety Element shall be amended to add the following policies:
Policy HAZ-2.10 Hillside Development Limitation
Limit hillside development, specifically in VHFHSZ’s, to mitigate wildfire risk.
Policy HAZ-2.11 Least Restrictive Development Areas
All development, including those in VHFHSZ’s, is required to adhere to the Least Restrictive Development Areas (LRDA) to ensure minimal disturbance of the natural environment and to avoid wildfire and geological hazards.
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Resolution 2023 - Council Meeting Date
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 17th day of January, 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
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PREPARED BY: Jamie Field
Chief of Police
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/17/2023
ITEM NO: 13
DATE: January 2, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the Police Services Report: July – December 2022 RECOMMENDATION:
Receive the Police Services Report: July – December 2022 BACKGROUND:
On August 16, 2022, the Police Department presented an update on overall delivery, staffing updates and comparison analysis of Police services. This Police Services Report presents the following information:
Department staffing update,
Calls for service and Officer activity,
Training and mandates,
Operational responses, mental health services, and Flock updates, and Community outreach and partnerships
DISCUSSION:
DEPARTMENT STAFFING UPDATE
Law enforcement agencies continue to compete for fewer applicants as there remains a nationwide decline in the number of qualified people wanting to become Police Officers since the start of the COVID-19 pandemic and the national spotlight on policing in 2020. The law enforcement profession continues to see a trend of retirements and career changes. Los GatosMonte Sereno Police Department (LGMSPD) culture and institutional knowledge transfer are integral parts of all Department staff and the loss of local experience is noticeable.
PAGE 2 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
The LGMSPD is in the process of implementing mechanisms to bring new staff up to speed, which takes at least six months for each new staff member.
The Police Department is in the process of administering a Career Development Plan and a Leadership Development Plan for all staff. These plans will support and provide guidance for career growth and advancement through internal mentorship and required or recommended Police Officer Standards and Training (POST) training.
The LGMSPD budget allocates for 39 sworn positions; however, recruitment and retention of qualified personnel remains challenging and a priority. The LGMSPD operates in an extremely regulated environment and data-driven profession with fewer staff than 15 years ago. From July 2022 through December 2022, two sworn staff members have departed for personal reasons or lateraled to a department closer to their home. Additionally, an academy recruit self-selected to not continue in the Police Academy. Also, several additional experienced Officers are expected to be separating soon for other career opportunities, to work closer to home, or pursue a new career path, bringing the current sworn number below what is reflected in the chart on this page. The Police Department has been successful in hiring two Police Officers in the last six months from other Bay Area law enforcement agencies. These new Officers are currently assigned to the Field Training Program and are not yet operating as independent Police Officers.
The Department has two current vacancies with one Police Officer Recruit scheduled for the Police Academy beginning February 2023. The 30 available sworn personnel are divided among four patrol shifts, the Investigations Bureau, and Administration. In addition, the last six months have experienced significant impacts by vacancies caused by extended on the job injuries and Family Medical Leave Act (FMLA). These have resulted in higher-than-normal overtime needs to maintain staffing levels, support special events, and participate in community outreach opportunities. Of the remaining sworn personnel, the table identifies the current availability of sworn staff, while also considering injury status, light or modified duty, and those currently being trained:
Budgeted
Sworn
Current
Sworn
Off due to
injury
Light /
Modified Duty
Training Total Active and
available
39 37 5 2 2 30
The process of hiring and training a Police Officer is a lengthy process. The process is further extended for applicants that have not completed a Police Academy. Recruitment, background
PAGE 3 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
investigations, and hiring of sworn and professional staff is estimated to take about three months. Each officer is required to complete a California POST accredited Police Academy for about six months. Upon graduation, the recruit must complete a POST approved 16-week Field Training Program led by certified members of our Police Department. Since July 2022, the Police Department has conducted three sworn oral boards and two professional staff oral boards. These efforts resulted in 15 applicants entering the background process phase, with nine as sworn positions. An additional sworn oral board is scheduled for the beginning of February.
It should be noted that the Fiscal Year 2022/23 Adopted Budget included one-time temporary staff hours to further augment sworn and non-sworn capacity with additional academy recruits, Community Service Officers (CSOs), and Reserve Officer support.
The Los Gatos-Monte Sereno Police Department’s localized and full-service Dispatch Center (Communications Division) is critical to the personalized and high-quality public safety response and delivery provided to the community. The Police Department is budgeted for eight full time Dispatchers and presently is at four with two additional expected to begin in training. Over the prior six months, one trained Dispatcher accepted an opportunity at another Police Department.
The hiring and recruitment efforts between July – December 2022 resulted in the following ten sworn and nonsworn hires:
Police Officers – two with law enforcement experience Police Academy Recruit – one starting the Academy February 2023 Dispatcher – three with two beginning training on January 17, 2023 Records Specialist – two began in November 2022
Community Service Officer Interns – two began training on September 1, 2022 The Police Department currently has the following open positions:
2 Sworn Personnel with more expected
2 Communications Dispatchers
Police and Records Manager (expected to be reclassified to a different position) The Police Department has a total of six per diem Dispatchers to supplement the full-time Dispatch staff and allow for better coverage, training, and vacation opportunities with more focused training of the new Dispatch staff. Vacations or elective time off frequently requires per diem backfill as well as overtime coverage.
PAGE 4 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
COVID continues to be an impact to staff and necessary overtime to fill the unexpected sick time vacancies. There were 496 fewer hours of Supplemental Paid Sick Leave (SPSLA) in the last six months of 2022 versus the first six months. SPSLA time for the last six months was 728 hours, and the six months prior to that (1/1/22 – 6/30/22) was 1,224 hours.
Since October 30, 2022, the Police Department began collecting staff hours spent on special events and Community Policing activities. There were 300 staff hours spent in preparation for and the day of the Children’s Holiday Parade. Additionally, an estimated 58 staff hours were allocated to the Tree Lighting and 34 hours devoted to Community Policing activities. The table below depicts the number of overtime hours collected in pay and compensatory time that were necessary to fill shift vacancies when comparing January to June with July to December. The variance of 1,227 hours more overtime for sworn staff during the second six months is due to vacancy, workers compensation vacancy, staff transition, community outreach and special events, required trainings, and SPSLA coverage.
Title 1/1/22 – 6/30/22 7/1/22-12/31/22 Variance in FY
2021/2022
Communications 1,607 hours 1,582 hours -25 hours
Sworn Staff 3,523 hours 4,750 hours 1,227 hours
CALLS FOR SERVICE AND OFFICER ACTIVITY
Despite the outlined staffing challenges, the LGMSPD has continued to meet response times and provide an uncompromising high level of service to the community. The following table depicts a comparison of the Communications Division call volume, both inbound and outbound, immediacy to which they are answered, and number of 911 calls over the last two years between the months of July to December.
The industry standard for a Public Safety Answering Point (PSAP) agency is a target for 911 calls to be answered within less than ten seconds 95% of the time. Outbound calls can be a result of transferring callers to other points of contact within Town Departments, contacting or following up with community members, or conducting other inter-agency duties.
PAGE 5 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
July –
December
Inbound 911
calls
% of 911 calls
answered < 10 seconds
Incoming Nonemergency callsNon-emergency
Outbound calls
2021 4,875 95.3% 16,219 7,786
2022 4,589 96.8% 15,112 7,453
Officers’ response to priority calls for service continue to be comparable to prior years, generally responding faster that the response time goals. The LGMSPD has set response time goals of 5:00 minutes for Priority 1 calls, 10:00 minutes for Priority 2 calls, and 15:00 minutes for Priority 3 calls. This data will be presented at the Council meeting. The metrics can also be found in the Fiscal Year 2022/23 Adopted Operating Budget in the performance measures section of the Police Department chapter. Priority 1 refers to immediate emergency with threat to life or a public safety hazard, Priority 2 is an urgent emergency that requires an immediate response, and a Priority 3 incident is a non-emergency.
Additional data regarding traffic stops and preliminary Racial Identity Profile Act information will be provided in the presentation to Town Council on January 17, 2023.
TRAINING AND MANDATES
The LGMSPD is committed to ensuring exceptional public safety service levels as a result of dedicated efforts from the Communications, Patrol, and other Divisions within the Police Department. Recruitment, training, and succession planning continue to remain an ongoing priority while monitoring the fiscal implications from overtime needs and wellness impacts on staff members.
Unfunded State legislative mandates effective in 2023 are being implemented, carefully navigated, and are a primary focus in the Police Department’s personnel assessment, equipment, and training. These mandates require a close review of Department policies and processes, and many are outcomes of police reform efforts towards increased transparency.
There have been several opportunities for promotions throughout the summer of 2022 for sworn and professional staff. These included five promotional positions for sworn staff and four for professional staff that require POST mandated and recommended training. There are no more open promotional positions currently in the Police Department. Within their first year, a new Corporal or Sergeant is required to attend a two-week Supervisor School and an Internal Affairs course, while the Captain position is required to attend a three-week Management
PAGE 6 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
School. The Department’s currently strained staffing level has forced this training to be delayed or required backfilling by a supervisor on overtime.
Open and necessary collateral assignments for Field Training Officer, Peer Support, Drone and Defensive Tactics and De-escalation have required staff to be sent to training for certification.
Training for these courses is generally a week in length and due to staffing, frequently requires backfill by other staff.
The LGMSPD sworn staff are required by POST to complete 34 hours of training annually and Dispatchers are required to complete 24 hours. This year, Officers have completed training in Emergency Vehicle Operations (EVOC) in the Explorer patrol vehicles to re-emphasize safe driving disciplines. From July to December 2022, staff have attended 812 hours of required training due to POST, Cal-Occupational Safety and Health Administration (OSHA), and other compliance mandates. An additional 656 hours of necessary development training has been provided for sworn and professional staff. Finally, sworn and professional staff have attended 320 hours of leadership training to aid in the career growth and new promotional positions achieved in 2022.
Staff is also being trained and preparing for compliance with Senate Bill (SB) 2 – Police Decertification. This legislative requirement is overseen by POST to ensure reporting and compliance with Police misconduct and eligibility for current or future employment. The Police Department’s Personnel and Training staff have been engaged in learning, explaining, and preparing for the robust requirements outlined in SB 2, as portions of the bill are retroactive to the conduct of Officers.
Finally, SB 16 is intended to increase the level of transparency into allegations and investigations of peace officer misconduct, and accountability for such misconduct. It expands on Senate Bill 1421, enacted in 2018, to create exceptions to the general rule that peace officer personnel records are confidential and not subject to disclosure. SB 16 also requires a preemployment background check of personnel files for each applicant, extended record-retention requirements, individual use-of-force reporting requirements, and expanded use of peace officer records in litigation.
Providing newly promoted and existing staff with the POST required and highly recommended training to develop confidence and competency is a priority for the Police Department. This requires continuous assessment of mandatory or immediate Department training needs based on POST requirements and operational effectiveness.
PAGE 7 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
OPERATIONAL RESPONSE, MENTAL HEALTH SERVICES, AND FLOCK UPDATES Earlier in 2022, the Department leadership participated in a Team Building Workshop. The outcome was the development of a two-year Strategic Plan that outlines five goals and priorities that the Police Department will continuously assess and remain focused on as part of the Departments direction through 2024. These goals and some of the accomplishments this year are listed below:
Goal 1 – Organizational recruitment, development, and retention of a quality workforce New staff – Officers, CSOs, Parking Control Officer, Records Specialists Sworn promotions and professional staff career ladder Outside background investigator for sworn personnel
Training for career growth and advancement for sworn and professional staff Goal 2 – Prevent and reduce crime, increase quality of life, and focus on traffic safety Community Emergency Response Team (CERT) – ongoing drills and trainings Jewish Community Center – hosted law enforcement training location School Resource Officer (SRO) Agreement with School Districts 2022 – 2024 Methodist and St. Luke’s Church – vulnerable communities support with LGMSPD Collaborative work with federal and local law partners regarding residential and commercial burglary
Goal 3 – Active partnerships
Neighborhood Watch – 16 meetings in 2022
Special Event support – Promenades, Music in the Park, Tree Lighting, and Parade Community Policing – Coffee with a Cop, Community Police Academy, Special Olympics Los Gatos-Monte Sereno Police Foundation
Goal 4 – Embrace and integrate technology throughout the agency Flock – significant increase in investigative leads, crime prevention, and recoveries California Incident-Based Reporting System (CIBRS)/National Incident-Based Reporting System (NIBRS) compliance by LGMSPD in July 2022
Axon camera update to fleet and body worn cameras
Drone Team – early development stages
Goal 5 – Organizational wellness
Peer Support Training – sworn and professional staff
Two new Chaplains
PAGE 8 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
Therapy Canines continued training and community engagement Support for time off for professional and sworn staff and improved managed leave balances
Santa Clara County Behavioral Health Services and the LGMSPD collaborate to provide mental health resources. LGMSPD evaluates multi-disciplinary needs when providing support to those of our unhoused community or experiencing mental health concerns. Below is an outline of available resources that may be utilized:
Therapy Canine Program
o Training is ongoing and they are an available resource to both staff and the public.
Mobile Crisis Response Team (MCRT)
o Efforts of MCRT are focused on connecting family/caregivers to community support, conduct mental health evaluations and assessments, provide post-crisis follow up, and provide crisis intervention and safety planning as needed for 18 or older.
Mobile Response and Stabilization Services (MRSS)
o Provides stabilization and support services for children and young adults from ages 4-20.
Post-crisis stabilization services are provided to ensure referral and coordination to ongoing services.
Trusted Response Urgent Support Team (TRUST)
o TRUST onsite field teams are available on weekdays and consist of a Crisis Intervention Specialist, First Aid Professional, and a Peer Support Specialist. This non-law enforcement
o mobile crisis response team works closely with crisis hotlines, the community and family member to provide intervention and follow up.
9-8-8
o In Santa Clara County, when someone calls 9-8-8 for services, their needs are evaluated by the Suicide Prevention Hotline to determine what above resources may be best suited to meet the caller’s needs.
The Flock Safety Technology pilot program continues to be an extremely valuable investigative and crime prevention tool throughout the Town of Los Gatos. Metrics will be shared in graph form during the presentation of this staff report at the Council meeting. The information will depict the increase in Flock incidents that alerted law enforcement in Los Gatos to vehicles
PAGE 9 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
DISCUSSION (continued):
associated to criminal acts and direct Officers to respond to specific areas or provide effective investigative follow up abilities. The current pilot program includes 16 Flock cameras.
The agreement ends in February 2024. Consideration for ongoing funding at $2,500 annually per camera will need to be evaluated for consideration in the FY 2023/24 Proposed Operating Budget.
The public is encouraged to access and use the information available on the Police Department’s website Transparency page which includes updated transparency data, crime statistics, and the Flock Transparency Page.
COMMUNITY OUTREACH AND PARTNERSHIPS
The Police Department is committed to building, bridging, and enhancing police-community relationships. This is done through opportunities for engagement and in the multitude of services that the Department offers to develop collaborative methods to maintain a safe community that is free of the fear of crime. LGMSPD initiated a Community Policing campaign in May 2022. The engagements are integral to building community – police partnerships and a better-informed vision of public safety needs and responses.
Community outreach and resources occur in many forms. Below are some highlights of the last six months:
Neighborhood Watch meetings – 7
National Night Out – 4 Participating Neighborhoods
Coffee With a Cop – 2
Bike Rodeos – 5
Boy or Girl Scout Troop Presentations – 8
Inaugural 10-week Community Police Academy
Therapy Canine community engagements – 10
PRAGNYA event for neurodiverse community
Downtown Business Safety Meeting with Chamber of Commerce Presentations to Interfaith / Service Clubs – 3
New Resident Welcome Packet deliveries - 72
Vacation Checks – 192 and homes registered / visited 576 times The Disaster Aid Response Team (DART) and CERT work collaboratively throughout the year on common drills and robustly support the Los Gatos Holiday Parade with many volunteers. Two trainings, one annual drill, and six new CERT graduates occurred in the last six months.
Additionally, the Police Department has been recruiting for other volunteer opportunities, such as the Explorer Cadet program.
PAGE 10 OF 10
SUBJECT: Receive the Information Provided in the Police Services Report: July – December 2022
DATE: January 17, 2023
CONCLUSION:
The Police Services Report is intended to provide a six-month review of available resources, operational efforts, and continued priorities that may be considered valuable to the community and Town Council. The overview provides a comprehensive understanding of the full-service model provided by localized policing services. The LGMSPD is committed to providing and demonstrating the values of professionalism, compassion, and integrity. The Police Department continues to pivot to meet the highly regulated federal, state, and local mandates and requirements within the law enforcement profession. Continued reduction in sworn staffing may lead to a modification and evaluation of the ability to support nonessential activities at the scale of the prior six months. LGMSPD also adjusted in response to national incidents that developed necessary evaluation of prior standard operations to assure the safety and security of the community.
In 2023, the LGMSPD organizational vision is centered on a theme of development. This includes professional development, advancement, and progressive efforts in technology throughout the Department. The focus on development and growth opportunities, progress on staffing, and career focused training for our most valued resource, our staff. This development will allow for greater efficiencies, eventual reduction in overtime, and retention. The external focus continues to be local engagement, safety, and security for our community and those that visit the Town of Los Gatos.
FISCAL IMPACT:
The receipt of this report has no fiscal implications.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408)354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 1/10/2023
ITEM NO: 14
ITEM NO: 4
DATE: January 11, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Review and Approve the Town’s Response to the 2022 Civil Grand Jury of Santa Clara County Report Entitled, “Show Me the Money: Financial Transparency Needed” and the Changes to the Town’s Operating Portfolio Investment Policy as Reviewed by the Finance Commission RECOMMENDATION:
Review and approve the Town’s response to the 2022 Civil Grand Jury of Santa Clara County report entitled, “Show Me the Money: Financial Transparency Needed” and the changes to the Town’s Operating Portfolio Investment Policy as reviewed by the Finance Commission.
BACKGROUND:
On December 14, 2022, the 2021-2022 Civil Grand Jury of Santa Clara County released a report entitled, “Show Me the Money: Financial Transparency Needed.” The Grand Jury’s final report is included as Attachment 1.
General law cities in California are required to comply with California Government Code Section 41004 (Section 41004), which states, “at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances. The city treasurer shall file a copy with the legislative body.” The benefit of the law is to ensure financial accountability and public transparency as well as to foster better fiscal affairs. Treasurer's reports provide city councils with timely and accurate financial information necessary to make reliable and sound decisions.
The Grand Jury’s final report includes the following finding related to the Town of Los Gatos:
PAGE 2 OF 3
SUBJECT: Operating Portfolio Investment Policy Review and Recommendation to Town Council
DATE: January 11, 2023
BACKGROUND (continued):
Finding:
The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
Recommendation:
The Town of Los Gatos should produce its reports on a monthly basis to comply with California Government Code section 41004 by March 15, 2023.
Pursuant to Penal Code Sections 933 and 933.05, the Grand Jury requested a response from the Town of Los Gatos and other jurisdictions by March 14, 2023.
DISCUSSION:
The Town’s current Investment Policy was last reviewed by the Finance Committee in January 2021 and adopted by Council in November of 2021. The Investment Policy establishes the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, State mandated eligible investments, transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the operating funds of the Town. All Town funds are invested and/or will be invested in accordance with the Investment Policy and with applicable sections of the California Government Code.
The Finance Commission is tasked with the review of the Town Investment Policy. At its January 10, 2023 meeting, the Finance Commission reviewed the proposed changes provided by staff and suggested one additional change to clarify that the monthly report will comply with Government Code Section 41004 (Attachment 2). Town Council approval of the staff and Commission recommendations will ensure the Town is in compliance with California Government Code Section 41004. The Finance Commission plans to review additional elements of the Investment Policy and potentially recommend supplemental reporting.
The draft Town response to the Civil Grand Jury of Santa Clara County for Town Council consideration is included as Attachment 3. The response is consistent with the proposed changes to the Town’s Investment Policy.
FISCAL IMPACT:
There is no fiscal impact associated with responding to the Grand Jury and modifying the Investment Policy.
PAGE 3 OF 3
SUBJECT: Operating Portfolio Investment Policy Review and Recommendation to Town Council
DATE: January 11, 2023
Attachments:
1. 2021-22 Civil Grand Jury Report “Show Me the Money: Financial Transparency Needed”
2. Town Council Policy 4-02: Investment Policy - Redlined
3. Staff Response to the Civil Grand Jury Report “Show Me the Money: Financial Transparency Needed”
Release date here Page 0 of 22
SHOW ME THE MONEY:
FINANCIAL TRANSPARENCY NEEDED
2022 Santa Clara County
Civil Grand Jury
December 14, 2022
ATTACHMENT 1 Page 155
SHOW ME THE MONEY: FINANCIAL TRANSPARENCY NEEDED
TABLE OF CONTENTS
GLOSSARY AND ABBREVIATIONS ...................................................................................... 2 SUMMARY ................................................................................................................................... 3 BACKGROUND ........................................................................................................................... 4 METHODOLOGY ....................................................................................................................... 5 INVESTIGATION........................................................................................................................ 6 CONCLUSION ........................................................................................................................... 11 FINDINGS AND RECOMMENDATIONS ............................................................................. 12 REQUIRED RESPONSES......................................................................................................... 15 APPENDIX ................................................................................................................................. 16 REFERENCES............................................................................................................................ 19
SHOW ME THE MONEY: FINANCIAL TRANSPARENCY NEEDED
GLOSSARY AND ABBREVIATIONS
Government Code, Section
41004
California Government Code section 41004 states:
“Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and
accounting of all receipts, disbursements, and fund
balances. The city treasurer shall file a copy with the legislative body.”
Treasurer’s Reports The reports required by Government Code section 41004 may have various styles and titles. For purposes of this report, the Civil Grand Jury will refer to these reports throughout as "treasurer's reports."
Charter City Article XI, section 3(a) of the California Constitution authorizes the adoption of a city charter and provides that the charter has the force and effect of state law. Article XI, section 5(a), the "home rule" provision, grants to charter cities the ability to govern over "municipal affairs."
There are six charter cities in Santa Clara County: San José, Palo Alto, Santa Clara, Sunnyvale, Gilroy, and
Mountain View.
General Law City A general law city may only have a form of government authorized by state general law. A city that has not
adopted a charter is bound by the state’s general laws even with respect to municipal affairs.
There are nine general law cities and towns in Santa Clara County: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga and
Morgan Hill. The scope of this investigation is limited to general law cities.
GAAP Generally Accepted Accounting Principles: a set of accounting rules and standards established by the
accounting industry.
SHOW ME THE MONEY: FINANCIAL TRANSPARENCY NEEDED
SUMMARY
General law cities in California are required to comply with California Government Code section 41004 (Section 41004), which states, “at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.
The city treasurer shall file a copy with the legislative body.” The benefit of the law is to ensure financial accountability and public transparency as well as to foster better fiscal affairs. Treasurer's reports provide city councils with timely and accurate financial information necessary to make reliable and sound decisions.
The 2022 Santa Clara County Civil Grand Jury (Civil Grand Jury) found that there is widespread noncompliance with this state requirement throughout Santa Clara County (County) by the general law cities. As of the date of this report, six of the nine general law cities1 in the County are noncompliant with this state law: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno. Additionally, the City of Cupertino was initially noncompliant until the city took corrective action during the Civil Grand Jury’s investigation. The City of Saratoga and City of Morgan Hill were the only two cities compliant prior to the investigation.
Based on responses from city officials, the Civil Grand Jury determined that there is a widespread misunderstanding among these general law cities in the County regarding Section 41004 reporting requirements. The Civil Grand Jury recommends that the noncompliant cities – Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno – comply with Section 41004. 1 The Town of Los Altos Hills and the Town of Los Gatos are general law cities.
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BACKGROUND
The State Legislature established the office of city treasurer by enactment of California Government Code, Title 4 - Government of Cities, Division 3 - Other Officers, Chapter 3 - City Treasurer. The statutory duties for city treasurers may generally be found in the following sections:
Section 41001: The city treasurer shall receive and safely keep all money the treasurer receives.
Section 41002: (a) The city treasurer shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in their possession; and (b) if the city has issued bonds, the city treasurer shall use a system of accounting and auditing that adheres to generally accepted accounting principles.
Section 41003: The city treasurer shall pay out money only on warrants signed by legally designated persons.
Section 41004: Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.
The city treasurer shall file a copy with the legislative body.
Pursuant to California Government Code section 36502, the city treasurer is an elective office.
California Government Code section 36508 and California Elections Code section 9222 permit cities to submit to the electors the question of whether the city treasurer position should be an appointive office. In that instance, the financial duties assigned by the state statutes to the city treasurer are transferred from an elected treasurer to an appointed officer if approved by the electorate. Only one general law city in the County, Morgan Hill, continues to have an elected city treasurer, who serves for four years. All other cities in the County have opted to assign city treasurer duties to senior administrative staff.
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METHODOLOGY
Upon receiving a complaint regarding Government Code section 41004 noncompliance in Cupertino, the Civil Grand Jury decided to expand the investigation to review all nine general law cities in the County: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga, and Morgan Hill. From March to August 2022, the Civil Grand Jury began the process by polling these Cities to determine if they produced treasurer’s reports.
The Civil Grand Jury took the following steps:
• Contacted a total of 22 officials across nine cities who were responsible for tasks relevant to the topic of this report.
• Reviewed relevant sections of the California Government Code, California Elections Code, and examined the ordinances, policies, and memos of each city relevant to their city treasurer duties.
• Reviewed published city council and city committee agendas relevant to Section 41004. • Reviewed other relevant city documents, including but not limited to financial audits, city organizational charts, and relevant job descriptions.
• Verified the six most recent treasurer’s reports of each city, if submitted.
The Civil Grand Jury inspected the contents of each report to verify the inclusion of the required elements: monthly disbursements, receipts, and fund balances. The Civil Grand Jury also determined whether the reports were published at least once each month to be compliant with Section 41004.
It should be noted that most cities do not call their report “Treasurer’s Report.” Appendix A provides links to examples of compliant Section 41004 reports, showcasing variations in terms of report name, style, layout, and appearance.
The Civil Grand Jury used the 2011-2012 Solano County Civil Grand Jury report entitled “City Treasurer Functional Review” as a reference for this report.
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INVESTIGATION
All interviews and email correspondence were designed to determine if general law cities complied with Section 41004. To be deemed compliant, a city must produce a financial document at least once each month that details all of the following: monthly disbursements, receipts, and fund balances – and must be filed with the legislative body. Six months of reports were requested to verify an existing track record. Data collection and verification took place from March to July 2022.
The results of this investigation are depicted in Table 1 below.
Table 1. Section 41004 Compliance Among Nine General Law Cities City/Town Compliant Noncompliant
Los Altos X
Los Altos Hills X
Los Gatos X
Milpitas X
Campbell X
Monte Sereno X
Cupertino X*
Saratoga X
Morgan Hill X
*During the investigation, Cupertino started complying with Section 41004.
There are a number of reasons for cities’ noncompliance:
• Some cities were under the impression that the Section 41004 mandate was a discretionary guideline.
• Others adopted the practice of other cities that did not produce the requisite monthly reports.
However, the primary error among the cities was that they produced abbreviated reports that omitted required information such as receipts, disbursements, and fund balances. Some of the deficient reports lacked substance, with abbreviated information presented without context or details.
The Civil Grand Jury believes there is no fiscal impact involved in complying with Section 41004.
Outside resources should not be required since existing staff already make some financial reports, collect this type of data, and should be able to produce treasurer’s reports. Therefore, each of the deficient cities can be compliant with minimal effort or burden.
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Noncompliant Cities and Towns
Los Altos
The City of Los Altos does not have an elected city treasurer. Further, the Los Altos Municipal Code does not specifically state which official performs the duties of a city treasurer. Los Altos Municipal Code Section 2.01.060, however, provides that the city manager is the administrative head of the city and is specifically empowered “keep the council at all times fully advised as to the financial condition and needs of the city.” In the City of Los Altos, monthly treasurer’s reports are not prepared and submitted to the city clerk in accordance with Section 41004.
At the time of the Civil Grand Jury inquiry in June 2022, the City of Los Altos did not submit any treasurer’s reports. According to the City of Los Altos, Government Code section 37208 indemnified them from the Section 41004 mandate. However, the language of Government Code Section 37208 refers to payroll warrants or checks and makes no mention of the reporting required by Section 41004, which requires a report of “receipts, disbursements and general fund balances.” Moreover, the language of Government Code Section 37208 neither excuses a city from complying with Section 41004 nor makes any reference to Section 41004.
Further, the city erroneously noted that its Generally Accepted Accounting Principles (GAAP) policy on financial reporting excused noncompliance with Section 41004 reporting requirements.
In 2015, the city adopted a “Financial Policy” that reads in part, “The city’s accounting and financial reports are to be maintained in accordance with GAAP.” GAAP accounting does not address the Section 41004 mandated requirements.
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The Civil Grand Jury determined that the City of Los Altos does not produce treasurer’s reports and thus is noncompliant.
Los Altos Hills
The Town of Los Altos Hills does not have an elected city treasurer. The town’s Municipal Code is silent on who performs the duties of the treasurer; however, the Civil Grand Jury learned that the treasurer responsibilities fall to the director of administrative services.
The Civil Grand Jury received monthly treasurer’s reports in June 2022. Upon inspection, however, they contained only disbursements and lacked receipts as well as fund balances; thus the reports are incomplete and noncompliant.
Los Gatos
The Town of Los Gatos does not have an elected city treasurer. The town’s Municipal Code Section 2.30.035 delegates the responsibility of the treasurer and the ability to assign those duties to the town manager. The director of finance is responsible for the town’s financial matters. The Town of Los Gatos produces quarterly reports, not monthly reports as required by Section 41004.
While the disbursements, receipts, and fund balances are in the reports, they must be published at least once each month to comply with Section 41004. Because the production intervals are quarterly, the Town of Los Gatos is not in compliance.
Milpitas
The City of Milpitas does not have an elected city treasurer. Milpitas Municipal Code section VI1-3.02 vests the duties of a city treasurer with the city manager, who is empowered to appoint a city treasurer pursuant to Section VI-1-3.04. In the City of Milpitas, the finance director produces weekly disbursement reports, quarterly receipt and investment reports for the general and special districts’ funds, and annual reports for all other reporting.
At the time of inquiry in June 2022, the Civil Grand Jury noted well-prepared reports. However, the frequency of report submission does not meet Section 41004 criteria, which requires monthly reports. Reports showing all receipts, disbursements, and fund balances must be filed with the city clerk at least once each month. Due to submission infrequency, the City of Milpitas is not in compliance.
Campbell
In November of 2010, voters in the City of Campbell approved Measure O, which changed the office of the city treasurer (and city clerk) from an elected to an appointed office. The City of
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Campbell’s Municipal Code is silent on who has officially assumed those duties.2 The Civil Grand Jury learned that the city’s finance director has the responsibilities of a treasurer and oversees the preparation of financial reports. The reports are prepared by the accounting clerk, reviewed by the finance manager and the finance director, and approved by the city manager for inclusion in the council packet.
At the time of inquiry in June 2022, 21 reports were submitted. The submitted documents had no payroll records and accounts payable balances with paid or disbursed funds. Additionally, the required information was not published at least once each month.
The City of Campbell’s submitted reports do not comply with Section 41004 because disbursements, receipts, and balances are not filed at least once each month.
Monte Sereno
The City of Monte Sereno does not have an elected city treasurer. The Monte Sereno Municipal Code section 2.04.010 designates the city manager as the director of finance and tasks the city manager with “performing all duties of City treasurer as set forth in Government Code sections 41000 et seq.” At the time of inquiry in June 2022, six treasurer’s reports were received by the Civil Grand Jury. While the reports did contain the required fund balances, the receipts and disbursements were not compliant with the Section 41004 requirement.
Compliant Cities
Cupertino
The City of Cupertino does not have an elected city treasurer. The City of Cupertino’s Municipal Code section 2.24.030 states:
The treasurer shall make monthly reports which conform to the requirements of Government Code Section 41004. Said reports shall be delivered to the City Council, city manager and made available for review by such other persons who may so request.
Until 2022, no staff member for the City of Cupertino had been preparing and delivering a monthly treasurer’s report to the Cupertino City council. However, during the Civil Grand Jury's 2 The City of Campbell’s Municipal Code does not appear to have been updated. The City of Campbell’s Municipal Code section 2.08.010 still states that the elected officers shall be those designated by general laws, which includes a city treasurer. Further, the code has other references to an elected city treasurer. (See Sections 2.16.040 [city treasurer compensation] and 2.16.010 [establishment of salaries].)
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investigation, the belated monthly treasurer’s reports for January and February 2022 were published and placed on the Cupertino Audit Committee agenda.
The Civil Grand Jury recognizes the action taken by the City of Cupertino as soon as it was brought to their attention. The City of Cupertino is now compliant with Section 41004 as of March 2022, despite the stated history of not submitting the required reports.
Saratoga
The City of Saratoga does not have an elected city treasurer. The City of Saratoga Municipal Code section 2-20.035 states that the city manager shall serve as the city treasurer and be responsible for “other duties and responsibilities as required by law to be performed by the City Treasurer.” Thus, the city manager is responsible for the preparation and submission of monthly treasurer’s reports.
The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are filed with the City of Saratoga and are fully compliant with Section 41004. These reports can also be found by the public on the city’s website. An example is shown in Appendix A.
Morgan Hill
The City of Morgan Hill has an elected city treasurer. The treasurer, in conjunction with the finance director, prepares the treasurer’s reports.
The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are produced.
The reports contain all the required components of disbursements, receipts, and fund balances.
Thus, the City of Morgan Hill is compliant with Section 41004. A compliant Morgan Hill treasurer’s report is shown in Appendix A.
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CONCLUSION
Within the County, there is widespread noncompliance with California Government Code section 41004 by the general law cities. The Civil Grand Jury commends the cities of Saratoga and Morgan Hill for being in full compliance and notes the City of Cupertino’s quick action to become compliant. The Civil Grand Jury recommends that the noncompliant cities of Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno comply with Section 41004. This is to be done by producing treasurer’s reports at least once each month containing the required disbursements, receipts, and fund balance information. The benefit of implementing this recommendation overshadows any limited cost impact since existing staff could compile the report. In short, there is great benefit in producing these reports, as they improve financial transparency to the residents of the cities.
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FINDINGS AND RECOMMENDATIONS
It is recommended that noncompliant cities start producing treasurer’s reports as required by law.
Some cities produce abbreviated information that does not include requisite financial information as defined in state Government Code section 41004. Some cities produce requisite reports, but not on a monthly basis.
Finding 1
The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code section 41004.
Recommendation 1
The City of Los Altos should comply with Government Code section 41004 by submitting monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances and by filing those reports with the city. This recommendation should be implemented by March 15, 2023.
Finding 2
The City of Los Altos does not produce treasurer’s reports in compliance with California Government Code section 41004. The reason provided for non-compliance was that the City of Los Altos’ financial policy does not require the preparation and submission of treasurer’s reports.
It is an erroneous belief that internal policies excuse compliance with Government Code section 41004.
Recommendation 2
The City of Los Altos should amend its financial policy to require that monthly treasurer’s reports be prepared and submitted in accordance with California Government Code section 41004 by March 15, 2023.
Finding 3
The Town of Los Altos Hills produces monthly treasurer’s reports but the content of those reports lacks monthly disbursements, receipts, and fund balancesrequired by California Government Code section 41004.
Recommendation 3
The Town of Los Altos Hills should update their existing monthly reports to include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 4
The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
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Recommendation 4
The Town of Los Gatos should produce its reports on a monthly basis to comply with California Government Code section 41004 by March 15, 2023.
Finding 5
The City of Milpitas does not produce monthly treasurer’s reports as required by California Government Code section 41004.
Recommendation 5
The Civil Grand Jury recommends that the City of Milpitas comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 6
The City of Campbell does not produce monthly treasurer’s reports as required by California Government Code section 41004.
Recommendation 6
The City of Campbell should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 7
The City of Monte Sereno does not produce monthly treasurer’s reports as required by California Government Code section 41004.
Recommendation 7
The City of Monte Sereno should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 8
When the Civil Grand Jury began this investigation, the City of Cupertino was not in compliance with California Government Code section 41004. However, starting in March 2022, the City of Cupertino began producing treasurer’s reports compliant with Section 41004.
Recommendation 8
The City of Cupertino should maintain compliance with California Government Code section 41004. Continued compliance is recommended.
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Finding 9
The Civil Grand Jury commends the City of Saratoga for producing monthly treasurer’s reports that include disbursements, receipts, and fund balances. The City of Saratoga is in full compliance with California Government Code section 41004.
Recommendation 9
No recommendation.
Finding 10
The Civil Grand Jury commends the elected city treasurer for producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances. The City of Morgan Hill is in full compliance with California Government Code section 41004.
Recommendation 10
No recommendation.
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REQUIRED RESPONSES
Pursuant to California Penal Code section 933(b) et seq. and California Penal Code section 933.05, the Civil Grand Jury requests responses from the following governing bodies:
Responding Agency Findings Recommendations
City of Los Altos 1, 2 1, 2
Responding Agency Findings Recommendations
Town of Los Altos Hills 3 3
Responding Agency Findings Recommendations
Town of Los Gatos 4 4
Responding Agency Findings Recommendations
City of Milpitas 5 5
Responding Agency Findings Recommendations
City of Campbell 6 6
Responding Agency Findings Recommendations
City of Monte Sereno 7 7
Responding Agency Findings Recommendations
City of Cupertino 8 8
Responding Agency Findings Recommendations
City of Saratoga 9
Responding Agency Findings Recommendations
City Treasurer of Morgan Hill 10
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APPENDIX A: EXAMPLES OF COMPLIANT TREASURER’S
REPORTS
On the following pages are two examples of monthly treasurer’s reports that contain the required disbursements, receipts, and starting and ending fund balances and are therefore compliant with California Government Code section 41004. They are included to show that there are various names and formats that the reports may take. Following the examples are links to the full reports for ease of access.
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Example 1. Page 3 of 7 from Saratoga August 2022 Treasurer’s Report https://legistarwebproduction.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf
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Example 2. Page 12 of 21 from Morgan Hill March 2022 Financial and Investment Report https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-andInvestment-Report-PDF
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REFERENCES
Bibliography
Campbell City Council meetings: December 7, 2021-June 7, 2022. Regular agenda item from the Finance Department, titled Approving Bills and Claims. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: February 1, 2022. Regular agenda item from the Finance Department, titled Investment Report – Quarter Ending December 2021. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: May 3, 2022. Regular agenda item from the Finance Department, titled Investment Report – Quarter Ending March 2022. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meetings: December 7, 2021 – June 7, 2022. Regular agenda item from the Finance Department, titled Monthly Investment Transactions Report. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: April 25, 2022, Study Session Meeting of the Campbell City Council. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
City of Cupertino, A- Payments to Chamber Jan 2015- Mar 2022. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Cupertino Administrative Services Department Finance Division, Fiscal Year 2019-2020 Comprehensive Annual Financial Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Cupertino, Audit Committee meeting, May 23, 2022. https://cupertino.legistar.com/MeetingDetail.aspx?ID=923553&GUID=0C41F4A6-93D2-4B90- AAEB-7E5FF0F1EF8C&Search= (Accessed November 28, 2022).
City of Cupertino, B- Festivals – City Fees Waived & City Expenses. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting, April 21, 2022: March 2022 Report of City-wide Fund Balances/Net Position. http://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting April 21, 2022: March 2022 Report of City-wide Receipts, Disbursements, and Cash Balances Cash Investments. http://cupertino.legistar.com/ (Accessed November 28, 2022).
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Cupertino City Council meeting, April 25, 2022. Administrative Services Department, Audit Committee Staff Report for March, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting, May 3, 2022. City Manager’s Office, City Council Staff Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting, May 19, 2022. Amended Agenda of the Cupertino City Council. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino Office of the City Clerk, Notice of Adjournment of the May 17, 2022. Notice, May 17, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino, Payment Register. Report, December 21, 2021. http://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino, Resolution NO. 22-015. Resolution, 2022. http://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Lancaster, Excerpt from A Quick Summary for the Press and Researchers, https://www.cityoflancasterca.org/home/showpublisheddocument/10103/635775792210230000 (Accessed November 28, 2022).
Los Altos City Council meetings, January, 2022 – May, 2022. Monthly Disbursement Listing. https://www.losaltosca.gov/calendar/month?field_microsite_tid=2131&field_microsite_tid_1=Al l (Accessed November 28, 2022).
Los Altos City Council meeting, May 24, 2022. Quarterly Investment Portfolio Report – Quarter Ended March 31, 2022. https://www.losaltosca.gov/citycouncil/page/city-council-meeting-155 (Accessed November 28, 2022).
Los Altos City Council meeting, March 8, 2022. Quarterly Investment Portfolio Report – Quarter Ended December 31, 2021. https://mccmeetingspublic.blob.core.usgovcloudapi.net/losaltoscameet-419c5823741c494d9706451908d3061f/ITEM-Attachment-001- 0979a9a16c5c4dc898b8e8d7d4d4a6e1.pdf (Accessed November 28, 2022).
Los Gatos Town Council meeting, February 15, 2022. Second Quarter Investment Report (October through December 2021) for Fiscal Year 2021/22.
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet94e86df454424b8b95ccc3f6eff96e41.pdf (Accessed November 28, 2022).
Los Gatos Town Council meeting, May 17, 2022. Third Quarter Investment Report (January through March 2022) for Fiscal Year 2021/22
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet997ea555609c4af9b94eeb28b34fc7e3.pdf (Accessed November 28, 2022).
Monte Sereno City Council meetings: December 28, 2021 – June 3, 2022. Regular agenda item from the Finance Department submitting the monthly Treasurer’s Report. https://montesereno.civicweb.net (Accessed November 28, 2022).
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City of Morgan Hill Finance Division, Monthly Financial and Investment Reports. March 31, 2022. https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-andInvestment-Report-PDF (Accessed November 28, 2022).
City of Saratoga Administrative Services, Treasurer’s Report for the Month Ended August 31, 2022. Final Report, October 5, 2022. https://legistarwebproduction.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf (Accessed November 28, 2022).
Solano County 2011-2012 Grand Jury, City Treasurer Functional Review. Final Report, January 12, 2012. https://solano.courts.ca.gov/wp-content/uploads/2020/01/111227-City-TreasurerFinal.pdf (Accessed November 28, 2022).
California Government Code Sections 34000 – 45345.
Los Gatos Municipal Code 2.30.035.
Milpitas Municipal Code VI-1-3.04.
Interviews
Interviews were conducted with 16 individuals between April 25, 2022, and June 16, 2022.
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This report was ADOPTED by the 2022 Santa Clara County Civil Grand Jury on this 14th day of December, 2022.
______________________________
Karen Enzensperger
Foreperson
COUNCIL POLICY MANUAL
TITLE: Investment Policy POLICY NUMBER: 4-02
EFFECTIVE DATE: 11/1/16 PAGES: 8
ENABLING ACTIONS: 2016-063 REVISED DATES: 5/16/17;5/15/2018; 9/3/2019; 11/03/2020, 1/17/2023
APPROVED:
PURPOSE
The Town of Los Gatos (the “Town”), incorporated in 1887, is located approximately 60 miles south of San Francisco, in the southwestern portion of Santa Clara County. The Town operates under the Council/Manager form of government. The Town Council is the legislative body for the Town. It has five members elected to serve staggered four year terms. The Town Manager is appointed by the Town Council.
The Town Council has adopted this Investment Policy in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the Town. All Town funds will be invested in accordance with this Investment Policy and with applicable sections of the California Government Code.
This Investment Policy was originally adopted by the Town Council of the Town of Los Gatos November 1, 2016. Town Council adopted revisions replace any previous investment policy or investment procedures of the Town.
SCOPE
This Investment Policy applies to all of the Town's short-term operating funds. These funds are described in the Town's annual financial report and include, but are not limited to:
General Fund
Special Revenue Funds
Capital Project Funds
Debt Service Funds
Enterprise Fund
Internal Service Funds
Fiduciary Funds ATTACHMENT 2
Small Town Service Community Stewardship Future Focus
TITLE: Investment Policy PAGE:
2 of 10
POLICY NUMBER:
4-02
Specifically excluded from this Investment Policy are amounts which are held by a trustee or fiscal agent and pledged as payment or security for bonds or other indebtedness, obligations under a lease, or obligations under certificates of participation. Such funds are invested in accordance with statutory provisions, ordinance, resolution, or indenture governing the issuance of the obligations. In addition, this Investment Policy is not applicable to the Town's Deferred Compensation Plan. These investments are directed by each employee participant in accordance with the rules of the Deferred Compensation Plan.
POLICY
OBJECTIVES
The Town’s funds shall be invested in accordance with all applicable Town policies and codes, State statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:
1. Preservation of capital and protection of investment principal.
2. Maintenance of sufficient liquidity to meet anticipated cash flows.
3. Attainment of a market value rate of return.
4. Diversification to avoid incurring unreasonable market risks.
DELEGATION OF AUTHORITY
Management responsibility for the Town’s investment program is delegated annually by the Town Manager to the Town Treasurer/Finance Director (the “Treasurer”) pursuant to California Government Code Section 36510. The Treasurer may delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. The Treasurer shall maintain a list of persons authorized to transact securities business for the Town. No person may engage in an investment transaction except as expressly provided under the terms of this Investment Policy.
The Treasurer shall develop written administrative procedures and internal controls, consistent with this Investment Policy, for the operation of the Town's investment program. Such procedures shall be designed to prevent losses arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees.
The Town may engage the support services of outside investment advisors in regard to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the Town's financial resources.
PRUDENCE
The standard of prudence to be used for managing the Town's investments shall be California Government Code Section 53600.3, the prudent investor standard which states, “When
TITLE: Investment Policy PAGE:
3 of 10
POLICY NUMBER:
4-02
investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” The Town's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The Town recognizes that no investment is totally without risk and that the investment activities of the Town are a matter of public record.
Accordingly, the Town recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the Town.
The Treasurer and authorized investment personnel acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that the deviations from expectations are reported in a timely fashion to the Town Council and appropriate action is taken to control adverse developments.
ETHICS AND CONFLICTS OF INTEREST
Elected officials and Town employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Elected officials and Town employees shall disclose to the Town Council any business interests they have in financial institutions that conduct business with the Town and they shall subordinate their personal investment transactions to those of the Town. In addition, the Town Manager and the Treasurer shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.
SOCIALLY RESPONSIBLE INVESTING
In addition to and subordinate to the objectives set forth above, investment of funds should be guided by the following socially responsible investment goals when investing in corporate securities and depository institutions. Investments shall be made in compliance with the responsible investment goals to the extent that such investments achieve substantially equivalent safety, liquidity and yield compared to other investments permitted by state law.
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(1) Environmental, Social Responsibility and Governance Concerns Investments are encouraged in entities that support community well-being through safe and environmentally sound practices and fair labor practices. Investments are encouraged in entities that support equality of rights regardless of sex, race, age, disability or sexual orientation. All corporate securities within the portfolio will be monitored by an independent third-party who will provide the Town with an ESG (Environmental, Social Responsibility, and Governance) rating. The Town will prefer companies when appropriate that maintain a higher ESG rating as opposed to those companies that have a lower ESG Rating. (2) Community Investments
Investments are encouraged in entities that promote community economic development, and investments are discouraged in entities that finance high-cost check-cashing and deferred deposit (payday-lending) businesses. Investments are encouraged in entities that have a demonstrated involvement in the development or rehabilitation of low-income affordable housing and have a demonstrated commitment to reducing predatory mortgage lending and increasing the responsible servicing of mortgage loans. Securities investments are encouraged in financial institutions that have a Community Reinvestment Act (CRA) rating of either Satisfactory or Outstanding, as well as financial institutions that are designated as a Community Development Financial Institution (CDFI) by the United States Treasury Department, or otherwise demonstrate commitment to community economic development.
AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the Town shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed to be part of this Investment Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Investment Policy and past Town investment practices, the Town may delay adherence to the new requirements when it is deemed in the best interest of the Town to do so. In such instances, after consultation with the Town’s attorney, the Treasurer will present a recommended course of action to the Town Council for approval. All investment limits specified in the Policy are calculated at the time of investment.
The Town has further restricted the eligible types of securities and transactions as follows:
1. United States Treasury bills, notes, bonds, or certificates with a final maturity not exceeding five years from the date of trade settlement.
2. Federal Agency Obligations for which the faith and credit of the United States are pledged for the payment of principal and interest and which have a final maturity not exceeding five years from the date of trade settlement. There is no limit on the percentage of the
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portfolio that can be invested in this category, however, no more than 20% of the town’s total portfolio shall be invested in the combination of Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) mortgage-backed securities.
3. Federal Instrumentality (government sponsored enterprise) debentures, discount notes, callable securities, step-up securities, and mortgage-backed securities (including FNMA and FHLMC) with a final maturity not exceeding five years from the date of trade settlement.
There is no limit on the percentage of the portfolio that can be invested in this category, however, no more than 20% of the town’s total portfolio shall be invested in the combination of GNMA, FNMA, and FHLMC mortgage-backed securities.
4. Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement with the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical-rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A. or sub-paragraph B. below:
A. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of five hundred million dollars ($500,000,000) and (3) Have debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
B. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.
Purchases of eligible commercial paper shall not exceed:
10% of the outstanding commercial paper of any single corporate issuer, 5% of the Town’s total portfolio in the commercial paper of any one issuer, and 25% of the Town’s total portfolio.
5. Eligible Bankers Acceptances with a maturity not exceeding 180 days from the date of trade settlement, issued by a state or national bank with combined capital and surplus of at least $250 million, whose deposits are insured by the FDIC, and whose senior long-term debt is rated at least A or the equivalent by a NRSRO at the time of purchase. No more than 5% of the Town’s total portfolio shall be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 30% of the Town’s total portfolio.
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6. Medium Term Notes (Corporate Notes) issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of trade settlement and rated at least “A” or the equivalent by a NRSRO. No more than 5% of the Town’s total portfolio shall be invested in the medium-term notes of any one issuer and the aggregate investment in medium term notes shall not exceed 30% of the Town’s total portfolio.
7. Municipal & State Obligations:
A. Municipal bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the 50 states.
B. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, operated by the local agency, or by a department, board, agency, or authority of the local agency.
Municipal bonds must be rated at least “A” or the equivalent by a NRSRO with maturities not exceeding five years from the date of the trade settlement. No more than 5% of the Town’s total portfolio shall be invested in “A” rated bonds or in the bonds of any one municipality. In addition, the aggregate investment in municipal bonds may not exceed 30% of the total portfolio.
8. Certificates of Deposit with a final maturity not exceeding five years from the date of trade settlement. The aggregate investment in certificates of deposit shall not exceed 30% of the Town’s portfolio, and no more than 5% of the portfolio shall be held in any one deposit or allocated to any one issuer. Certificates of Deposit shall be issued by a nationally or statechartered bank or a state or federal savings and loan association or by a state-licensed branch of a foreign bank or by a federally licensed branch of a foreign bank provided that the senior debt obligations of the issuing institution are rated at least “A” or the equivalent by a NRSRO.
Negotiable certificates of deposit issued by a nationally or state-chartered bank, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposits are subject to the limitations of Section 53601(i), shall be fully insured by the FDIC with a corresponding FDIC certification number, and shall be delivered through the Depository Trust Company.
Non-Negotiable certificates of deposit issued by a nationally or state-chartered bank, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of non-negotiable certificates of deposit are subject to the limitations of Sections 53601(n) and 53638 and shall be fully insured by the FDIC with a corresponding FDIC certification number.
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Private sector entities may be used to place certificates of deposit subject to the limitations of Section 53601.8.
9. State of California’s Local Agency Investment Fund (LAIF), pursuant to California Government Code Section 16429.1. The aggregate amount invested in LAIF shall not exceed the maximum allowed by the fund.
10. Money Market Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in government securities, and (4) have a rating of at least AAA or the equivalent by at least two NRSROs.
No more than 10% of the Town’s total portfolio shall be invested in money market funds of any one issuer, and the aggregate investment in money market funds shall not exceed 20% of the Town’s total portfolio.
Securities that have been downgraded to a level that is below the minimum ratings described herein may be sold or held at the Town’s discretion. The portfolio will be brought back into compliance with Investment Policy guidelines as soon as is practical.
The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from it must be preapproved by resolution of the Town Council.
PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The Town will not invest in securities maturing more than five years from the date of trade settlement, unless the Town Council has by resolution granted authority to make such an investment at least three months prior to the date of investment.
SELECTION OF BROKER/DEALERS
The Treasurer shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the Town to purchase securities only from those authorized firms. To be eligible, a firm must meet at least one of the following criteria:
Be recognized as a Primary Dealer by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure; or Report voluntarily to the Federal Reserve Bank of New York; or Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).
In addition, authorized broker/dealers must be licensed by the State of California as a broker/dealer as defined in Section 25004 of the California Corporations Code.
The Town may engage the services of investment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved broker/dealers.
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Such broker/dealers will comply with the selection criteria above and the list of approved firms shall be provided to the Town on an annual basis or upon request.
In the event that an external investment advisor is not used in the process of recommending a particular transaction in the Town’s portfolio, authorized broker/dealers shall attest in writing that they have received and reviewed a copy of the this Investment Policy and shall be required to submit and annually update a Town approved Broker/Dealer Information request form, which includes the firm’s most recent financial statements.
The Town may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in Item 4 of the Authorized Securities and Transactions section of this Investment Policy.
COMPETITIVE TRANSACTIONS
Each investment transaction shall be competitively transacted with authorized broker/dealers.
At least three broker/dealers shall be contacted for each transaction and their bid and offering prices shall be recorded.
If the Town is offered a security for which there is no other readily available competitive offering, the Treasurer will document quotations for comparable or alternative securities.
SELECTION OF BANKS
The Treasurer shall maintain a list of banks and savings banks approved to provide banking services for the Town. To be eligible, a bank must be a member of the Federal Deposit Insurance Corporation, must qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and shall secure deposits in excess of FDIC coverage in accordance with California Government Code Section 53652.
Authorized banks that accept deposits from the Town shall meet high standards with regard to liquidity, asset quality, profitability and capital adequacy. The Treasurer shall utilize a commercial bank rating service to perform credit analysis on banks seeking authorization.
Banks that in the judgment of the Treasurer no longer offer adequate safety to the Town shall be removed from the Town’s list of authorized banks.
SAFEKEEPING AND CUSTODY
The Treasurer shall select one or more financial institutions to provide safekeeping and custodial services for the Town. A Safekeeping Agreement shall be executed with each custodian bank prior to utilizing that bank's safekeeping services.
Custodian banks will be selected on the basis of their ability to provide services for the Town's account and the competitive pricing of their safekeeping related services.
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The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the Town.
Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices.
All investment securities, purchased by the Town, will be delivered by book entry and will be held in third-party safekeeping by a Town approved custodian bank or its Depository Trust Company (DTC) participant account.
All Fed wireable book entry securities owned by the Town shall be held in the Federal Reserve System in a customer account for the custodian bank which will name the Town as “customer.” All DTC eligible securities shall be held in the custodian bank’s DTC participant account and the custodian bank shall provide evidence that the securities are held for the Town as “customer.”
PORTFOLIO PERFORMANCE
The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the Town’s investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio’s weighted average effective maturity. When comparing the performance of the Town’s portfolio, its rate of return will be computed net of all fees and expenses.
REPORTING
No less than quarterly Every month, the Treasurer shall prepare a report that conforms to Government Code Section 41004. of the investment earnings and performance results of the Town’s investment portfolio. The report shall be submitted to the Town Clerk within 45 days after the end of each quarter month for inclusion as an agenda item at the next scheduled Town Council meeting. The report shall include the following information:
1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the Town;
2. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;
3. Realized and unrealized gains or losses calculated by amortized cost and by fair value;
4. The weighted average maturity of the portfolio and a percentage breakdown of the total portfolio by maturity;
5. A description of the funds, investments and programs that are under the management of contracted parties;
6. The Town of Los Gatos Environmental, Social and Governance (ESG) scores;
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7. A statement of compliance with this Investment Policy or an explanation for noncompliance; and
8. A statement of the ability to meet expenditure requirements for the next six months, and an explanation of why money will not be available if that is the case.
PROCEDURES
This Investment Policy shall be adopted by resolution of the Town Council. Annually the Town Manger shall present this Investment Policy to the Town Council and the Finance Commission for review to ensure its consistency with the Town’s investment objectives, current law and economic trends. Any amendments to this Investment Policy shall be approved by the Town Council.
APPROVED AS TO FORM:
_________
Gabrielle Whelan, Town Attorney
TOWN OF LOS GATOS
OFFICE OF THE TOWN COUNCIL
(408) 354-6801
[email protected]
January 18, 2023
The Honorable Beth McGowen, Presiding Judge
Santa Clara County Civil Grand Jury
Superior Court Building
191 North First Street
San Jose, CA 95113
RE: Response to the Santa Clara Civil Grand Jury Report on “Show Me the Money: Financial Transparency Needed” Dated December 14, 2023
Dear Presiding Judge McGowen,
The Town would like to thank the Grand Jury for its work on this important topic. Enclosed please find the Town’s response to the Santa Clara Civil Grand Jury Report on “Show Me the Money, Financial Transparency Needed.”
The response was reviewed and approved by the Los Gatos Town Council on January 17, 2023. The Town is required to respond to one Finding and one Recommendation. The attached document contains the Town’s responses to the Finding and Recommendation. In summary, the Town agrees and already implemented the recommendation of monthly reporting.
If you have any questions, please contact me at [email protected] or (408) 354-6801.
Sincerely,
Maria Ristow
Town of Los Gatos Mayor
Enclosure
cc:
Karen Enzensperger, Foreperson, 2022 Civil Grand Jury
Clerk of the Santa Clara County Superior Court
ATTACHMENT 3
Town of Los Gatos Response to Grand Jury Report on Ballot Questions Finding:
The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
Recommendation:
The Town of Los Gatos should produce its reports on a monthly basis to comply with California Government Code section 41004 by March 15, 2023.
Response: The Town has already implemented changing the frequency of the reporting from quarterly to monthly.
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408)354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 1/17/2023
ITEM NO: 14
DESK ITEM
DESK
ITEM NO: 4
DATE: January 17, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Review and Approve the Town’s Response to the 2022 Civil Grand Jury of Santa Clara County Report Entitled, “Show Me the Money: Financial Transparency Needed” and the Changes to the Town’s Operating Portfolio Investment Policy as Reviewed by the Finance Commission REMARKS:
On January 16, 2023, Finance Commission Vice Chair Phil Koen sent a request to Vice Mayor Badame to refer the proposed Investment Policy item back to the Finance Commission (see Attachment 4). The Vice Mayor requested that staff respond to the points in his email.
For its January 10th meeting, the Finance Commission was provided the Grand Jury Report, a staff report explaining the recommended response (though not the draft letter as that is for Council to consider), and a recommended change to the Town’s Investment Policy. The Commission discussed the matter and the Chair provided suggested edits to the Investment Policy which have been forwarded to the Council for consideration for tonight. To provide some additional context to the meeting, provided below are comments from Chair Tinsley:
“I absolutely agree Phil but that’s not what’s on the agenda today. We have an item on the agenda today because we are noncompliant with the law and we need to become compliant with it. I totally agree, I like Saratoga’s report a lot more thank our own. I like seeing all those Internal Service funds, the monthly transactions, and Internal Service funds and capital projects. That would be very illuminating so I think we should talk about this. This should be a part of our workplan which were not going to have time to talk about tonight, but we will in the next meeting. This should be part of our workplan to review the format of the report, but for now this specific item on the agenda just deals with complying with the law. And so, I would suggest
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SUBJECT: Operating Portfolio Investment Policy Review and Recommendation to Town Council
DATE: January 17, 2023
we update the Investment Policy to comply specifically with 41004 and in the future work ideas this year let’s talk about improving the report format in a more general sense. Which I think is a much bigger topic and I agree Phil much more important but it’s not on the agenda tonight.”
In addition, in response to a question from Commissioner Koen, the Town Attorney has opined that Government Code Section 41004 requires that the Town file a document showing the Town’s “disbursements, receipts, and fund balances” with the Town Clerk monthly. The Town Attorney reviewed the Town’s investment report and it includes this information. The Grand Jury Report also states that the investment report satisfies the criteria of Government Code Section 41004. For these reasons, while there may be additional documents that would satisfy the requirement, staff proposes to currently use the Town’s investment report to comply with Government Code Section 41004.
Staff informed the Finance Commission that it welcomes a future conversation about potential additional changes to the Investment Policy, including additional reporting as noted in the Report to the Town Council.
It is important to note, the Civil Grand Jury found the Town’s report compliant with State law; however, it was the frequency of reporting that concerned the Grand Jury. The Town Investment Report includes the Town’s Cash Fund Balances, the money that is available for investment.
In regards to the suggested iterative process between staff and the Finance Commission, it is not practical given the lean resources of the Town to have every staff report that summarizes the work of the Finance Commission to be reviewed by the Commission prior to Council consideration. Members are welcome to provide additional information in the form of public comment which can then be forwarded to the Town Council, such as the one from Vice Chair Koen dated January 16, 2023. This is the Town’s practice with all of its Boards, Committees, and Commissions.
It is inefficient for the Town’s limited resources to revisit or refer issues back to the Finance Commission that have already come before the Finance Commission. For example, the Finance Commission has important work to do at its February meeting, including a review of the MidYear Budget Report, Five-Year Forecast, and its budget recommendations to Town Council.
Because of Measure A, the Town is under a compressed schedule to post a complete and balanced Proposed Operating and Capital Budget by mid-April. To meet this deadline, the Finance Commission should complete its work on these three February items as Council is scheduled to consider them on Feb. 21.
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SUBJECT: Operating Portfolio Investment Policy Review and Recommendation to Town Council
DATE: January 17, 2023
In addition, Vice Chair Koen has submitted two other communications to staff after the January Finance Commission meeting requesting information that was provided at the meeting as well as additional data (Attachment 4). The Town does not have the financial resources to repeat what was stated at the meeting as the meeting recordings are available for the public and Finance Commission members, nor to address additional matters in between the monthly Finance Commission meetings while meeting the Measure A requirements.
Additional public comment from a resident is also included in Attachment 4.
Attachments previously distributed with the Staff Report:
1. 2021-22 Civil Grand Jury Report “Show Me the Money: Financial Transparency Needed”
2. Town Council Policy 4-02: Investment Policy - Redlined
3. Staff Response to the Civil Grand Jury Report “Show Me the Money: Financial Transparency Needed”
Attachment distributed with this Desk Item:
4. Public Comments received before 11:01 a.m. Tuesday January 17, 2023
From: Jak Van Nada
Sent: Tuesday, January 17, 2023 10:58 AM
To: Wendy Wood <[email protected]>; Town Manager <[email protected]>; Arn Andrews <[email protected]>; Gabrielle Whelan <[email protected]>; Maria Ristow <[email protected]>; Rob Moore; Rob Rennie <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]> Subject: 1-17-23 Council Meeting Item 14
EXTERNAL SENDER
1-17-23
Town Council Meeting Item 14
The purpose of the report requested by the Grand Jury was to increase transparency and give the Council more information upon which to make decisions. This is not what the Staff has proposed to do.
GC section 41004 mandates a monthly report “accounting of all receipts, disbursements and fund balances”. The investment report does not comply with GC 41004 since all fund balances and activity impacting the fund balances is not reported. This is a problem. Simply submitting the investment report monthly will not be sufficient to meet the “all fund balances” reporting requirements found in GC section 41004.
The Grand Jury report specifically cited the City of Saratoga’s monthly report as an example of what should be provided to the State. I have attached that report whose tables 1 and 2 fulfill the reporting requirement for GC 41004. Note that Saratoga in the Staff report specifically addresses the difference between a Cash and Investment summary and fund balance. And this is why GC section 41004 exists. That is why this report provides the TRANSPARENCY that the Town states they provide to the Council and to the citizens. The Town Council should instruct Staff to prepare tables 1 and 2 for Los Gatos and incorporate those tables into the investment report. By doing so, the town will be in compliance with all government mandated reporting.
Once again, the problem we have is not what you see, but rather, what you don’t see.
Jak Van Nada
Los Gatos Community Alliance
SARATOGA CITY COUNCIL
MEETING DATE: December 7, 2022
DEPARTMENT: Administrative Services
PREPARED BY: Ann Xu, Accountant
Agnes Pabis, Finance Manager
SUBJECT: Treasurer’s Report for the Month Ended October 31, 2022 RECOMMENDED ACTION:
Review and accept the Treasurer’s Report for the month ended October 31, 2022.
BACKGROUND:
California government code section 41004 requires that the City Treasurer submits to the City Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Municipal Code of the City of Saratoga, Article 2-20, Section 2-20.035 designates the City Manager as the City Treasurer. This report is prepared to fulfill this requirement.
The following attachments provide various financial transaction data for the City of Saratoga’s Funds collectively as well as specifically for the City’s General (Operating) Fund, including an attachment from the State Treasurer’s Office of Quarterly LAIF rates from the 1st Quarter of 1977 to the present.
FISCAL STATEMENT:
Cash and Investments Balance by Fund
As of October 31, 2022, the City’s unaudited cash and investments totaled $34,998,784. The City Council’s adopted policy on the Working Capital Reserve Fund states that effective July 1, 2016: for cash flow purposes and to avoid the occurrence of dry period financing, pooled cash from all funds should not be allowed to fall below $1,000,000. The total pooled cash balance of $34.9 million exceeds the minimum amount required.
Comerica Bank $ 2,366,778
Deposit with LAIF $ 32,632,006
Total Cash $ 34,998,784
Cash Summary
City’s Current Financial Position
In accordance with California government code section 53646 (b) (3), the City is financially well positioned and able to meet its estimated expenditure requirements for the next six months. As of October 31, 2022, the City’s financial position (Assets $35.2M, Liabilities $4.9M, and Fund Equity $30.3M) remains very strong and there are no issues in meeting financial obligations now or in the foreseeable future.
The following Fund Balance schedule represents actual funding available for all funds at the end of the monthly period. This amount differs from the above Cash Summary schedule as assets and liabilities are components of the fund balance. As illustrated in the summary below, Total Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available.
ATTACHMENTS:
Table 1 – Change in Total Fund Balances by Fund
Table 2 – Change in Total Fund Balances by CIP Project
Chart 1 – Change in Investment Pool Balance by Month
Chart 2 – Local Agency Investment Fund (LAIF) Quarterly Apportionment Rates "+
Total Cash $ 34,998,784
Plus: Assets 177,614
Less: Liabilities (4,876,570)
Ending Fund Balance $ 30,299,828
Adjusting Cash to Ending Fund Balance